The Bombay High Court set aside denial of Golden Cryo Pvt. Ltd. Rs 23.67 crore GST refund, criticising officials for undue haste and procedural violations, holding such actions contrary to law and rule of law in refund adjudication process.
The Supreme Court of India held that tax refunds are payable only when the burden has not been passed on, warning courts against creating mechanisms beyond statutory limits. Referring to Section 54, it directed amounts to the Consumer Fund.
The Orissa High Court held Section 161 allows only apparent error correction, mandating reasoned scrutiny of records and materials. A Division Bench of Harish Tandon and Murahari Sri Raman faulted authorities for ignoring ITC reconciliations, quashing the rejection infirm.
The Supreme Court has ruled that bona fide purchasers can claim Input Tax Credit (ITC) even if the seller fails to deposit tax, reaffirming protection for genuine taxpayers and upholding Article 14 equality under the DVAT framework.
