Section 54 of the CGST Act, 2017 – Refund — The Petitioner challenged the SCN dated 14.09.2022 issued under Section 74 and the Sanction Order dated 15.11.2022. The petitioner’s applications for refund for the period between January 2020 and March 2020; April 2020 and June 2020 are allowed, and the petitioner has also received refund. The third respondent, rejected the application for refund for the period between April 2021 and June 2021 vide order dated 15.11.2022. The court observed that the order rejecting refund cannot be sustained as it is premised only on the ground that SCN is issued for the earlier two periods, when it is undisputed that on examination of the critical issue whether the e- BRCs relied upon by the petitioner relates to the Bengaluru unit, the petitioner is permitted refund.

Held that:- The Hon’ble High Court allowed the petition in part and quashed the third respondent’s Order dated 15.11.2022 restoring the same for reconsideration subject to the outcome of the proceedings commenced with the SCN. The petitioner within two weeks shall be at liberty to file a detailed response to the SCN with additional documents and the second respondent, within four weeks, shall decide on the continuation of the proceedings.