Desk of CA. Praveen Sharma – 933 Series (CAPS) 

Gujarat High Court in the case of Aquaeva Chemtech Private Limited

The Gujarat High Court heard a petition filed by Aquaeva Chemtech Private Limited regarding rejection of its GST refund claim. The petitioner had challenged two deficiency memos issued by the tax department and requested cancellation of those memos along with approval of the refund.

The petitioner relied on an earlier High Court judgment which held that transfer of leasehold land rights is treated similar to sale of land and is not liable to GST. After purchasing the plot and paying full consideration, the petitioner applied for refund of the GST paid.

However, the tax authority rejected the refund applications stating that the documents were not clear and there was no specific circular covering such refunds. As a result, the petitioner approached the High Court.

During the hearing, the government submitted that if the petitioner files a proper refund application with necessary documents, the same will be examined and processed.

The Court disposed of the petition by directing the petitioner to submit the refund request, which must be decided within two weeks. The Court also observed that if the refund is not processed within the stipulated time, the petitioner may approach the Court again, and action including possible penalty may be taken against the concerned officer.

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