• Notification Date: 29-01-2022
• Notification No: N/A

Bombay HC Invalidates the Rejection of GST Refunds Claimed by Colgate Global

The Bombay High Court has invalidated the GST authority’s order to reject the refund claimed by Colgate Global Business Services Limited. The court has stated that the deputy commissioner of state tax has not provided any reasons for rejecting the GST refund. The court added that mentioning a reason is compulsory before rejecting a claim as stated under Rule 92(3) under the Central GST Act. Thus, the order of the GST authority was contradictory to the Rule.

Colgate Global is engaged in computer and related business activities. The company has claimed a refund of Rs.4.33 crore for the period between July 2017 and March 2018.

The Bombay High Court has ordered the officer to declare a new order within three weeks of granting a personal hearing to the company. The court has asked the officer to remain uninfluenced by the previous observations and the conclusions that have been acquired in the last order.

There is a deadline set by the High Court for the follow-up. The order as declared by the official will be passed on to the company within a week of passing the same. The government will process the refund to the company within two weeks if the refund is approved. If the decision goes against the interest of the company then it is free to proceed further with the case.