In Writ Petition No. 3711 of 2022 – BOM HC – Bombay High Court orders restoration of Trafigura Global Services' refund application for examination by Deputy Commissioner, says it needs to be determined whether the petitioner was entitled to the law laid down in Chromotolab and Biotech Solutions case
Justice Nitin Jamdar & Justice Abhay Ahuja [12-04-2023]

Read Order: Trafigura Global Services Pvt. Ltd v. Central Board of Indirect Taxes And Customs And Another

Chahat Varma

New Delhi, June 5, 2023: The Bombay High Court has directed the restoration of the Trafigura Global Services Pvt. Ltd.’s (petitioner) refund application with a direction to the Deputy Commissioner to provide an opportunity of hearing to the Petitioner and subsequently pass an appropriate order in accordance with the law.

In this case, the petitioner, engaged in providing administrative and support services to foreign companies, claimed a refund of integrated tax under a Letter of Undertaking as per Section 16 of the Integrated Goods and Service Tax Act, 2017 (IGST Act). The petitioner received a notice under Form GST-RFD-08, proposing to reject the refund application on the grounds of time limitation. The petitioner responded by informing that while the application was submitted on the common portal, the supporting documents were submitted online and manually. However, the Commissioner rejected the refund application, stating that the statutory limit of sixty days would apply only to physical submission of the application. The Commissioner relied on Circular No. 17/17/2017 dated 15 November 2017 in support of this decision.

The court observed that the petitioner had referred to a decision of the Gujarat High Court in the case of M/s. Chromotolab and Biotech Solutions vs. Union of India [LQ/GujHC/2022/13166], wherein the Gujarat High Court had held that the date on which the online application is filed should be taken into consideration and not the date of physical application.

The court noted that no contrary decision was presented, however, it was opined that even if the Gujarat High Court decision was applicable, the facts of the petitioner's case would still need to be examined to determine whether the petitioner was entitled to the law laid down and this enquiry will have to be conducted by the Deputy Commissioner.