Gujarat High Court Quashes Order Rejecting Refund Claim By Vodafone-Idea
Bhavya Singh
21 Aug 2023 11:00 AM GMT
The Gujarat High Court has ruled in favor of M/S Vodafone Mobile Services Limited, a prominent telecommunications provider, in a case challenging the rejection of their claim for a tax refund under the Goods and Services Tax (GST) regime.The petitioner, M/S Vodafone Mobile Services Limited, had undergone a merger with Idea Cellular Limited on August 30, 2018, following an order issued by...
The Gujarat High Court has ruled in favor of M/S Vodafone Mobile Services Limited, a prominent telecommunications provider, in a case challenging the rejection of their claim for a tax refund under the Goods and Services Tax (GST) regime.
The petitioner, M/S Vodafone Mobile Services Limited, had undergone a merger with Idea Cellular Limited on August 30, 2018, following an order issued by the National Company Law Tribunal. Subsequently, the merged entity migrated to the GST regime, registering under the provisions of the CGST / GGST Act, 2017.
Under the new GST framework, taxes were paid by the petitioner according to the respective state's liabilities, ensuring compliance by filing GSTR-3B & GSTR-1. However, it was discovered that excess tax payments were made in the state of Gujarat. To rectify this, the petitioner applied for a refund of the excess tax payments, duly compensating for the short payment of tax through annual returns.
The crux of the challenge presented in this case revolved around the legality of the order No. 13990 dated February 27, 2020, issued by the concerned authorities. The court observed that the rejection of the claim for refund under Section 54(5) of the CGST Act, 2017 lacked adequate reasoning.
The petitioner's counsel, Mr. Bharat Raichandani, referenced similar cases and orders from the High Court of Madhya Pradesh, the High Court of Calcutta, and the High Court of Telangana involving the same petitioner. These orders collectively indicated that the challenged orders should be overturned, and if the petitioner were to submit a fresh application for refund, it would be processed in accordance with the law.
However, the respondent's counsel, Mr. Raj Tanna, contended that the petitioner should explore alternative remedies, such as filing an appeal under Section 107 of the CGST Act, instead of pursuing the present petition.
The division bench of Justices Biren Vaishnav And D. M. Desai, after considering the various orders passed in similar cases involving the petitioner, directed the petitioner to submit a fresh refund application following the guidelines outlined in Circular No. 125/44/2019-GST dated November 18, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing. The court further instructed that the authorities should expeditiously process the application on its merits, preferably within four weeks.
In light of the above, the impugned order dated February 27, 2020, was quashed and set aside by the court. The petition has been allowed accordingly, and direct service has been permitted. The court ruled that no costs are to be imposed in this matter.
Case Title: M/S Vodafone Mobile Services Limited Versus Union Of India
Case Citation: 2023 Livelaw (Guj) 138
Case No.: R/Special Civil Application No. 1345 Of 2023
Appearance: Mr Bharat Raichandani, Advocate Assisted By Mr Anshul Jain & Mr Aditya R Parikh(8769) For The Petitioner(S) No. 1 Mr Raj Tanna, Agp For The Respondent(S) No. 2
