Assessee Entitled to Refund of Amount Recovered as the Appellate Tribunal Has Yet Not Been Constituted

By: Admin Date: July 15, 2024 Categories: Important Pronouncements

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The Hon’ble Karnataka High Court in Cultgear Private Ltd. v. Commercial Tax Officer [W. P. No. 6795 of 2024 dated April 02, 2024], granted the liberty to the Assessee to file an appeal before the GSTAT as and when it is constituted. The Court also directed the Revenue Department to refund the amount recovered from the Assessee, subject to the furnishing of a bank guarantee.

Facts:

Cultgear Private Ltd. (“the Petitioner”) filed a writ petition against the order dated September 16, 2023 (“the Impugned Order”) seeking permission to file an appeal against the Impugned Order within an extended period of limitation once the appellate tribunal is constituted. The Petitioner also requested a refund of the recovered amount, offering to furnish a bank guarantee in return.

Issue:

Is the Petitioner entitled to a refund of the amount recovered since the appellate tribunal has yet to be constituted?

Held:

The Hon’ble Karnataka High Court in W.P. No. 6795 of 2024 granted the Petitioner the liberty to file the appeal before the GSTAT once it is constituted. Additionally, the Court directed the Revenue Department to refund the amount recovered from the Petitioner, provided a bank guarantee is furnished.

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