Calcutta High Court Directs Revenue Department to Reconsider GST Refund Decision Prejudicing Petitioner

The Calcutta High Court has recently ruled that the Revenue department must reconsider its earlier decision that prejudiced a petitioner, Edelweiss Rural & Corporate Services Limited. The ruling involves a Goods and Services Tax (GST) refund dispute related to a company whose business operations had ceased and registration had been cancelled.

Edelweiss, a petitioner, lodged an appeal with the court after receiving contradictory orders from the Revenue department's Deputy Commissioner of Revenue. A refund sanction order dated February 11, 2022 was initially rejected but later upheld by the appellate authority in February 2023.

However, when Edelweiss filed for a GST refund again on October 20, 2023, they were met with an order that significantly altered the original decision. The new order stated that the refund would be paid to the registered taxpayer's Electronic Credit Ledger instead of a bank account, which contradicted earlier promises.

The Court observed this contradiction and further directed the Deputy Commissioner to reconsider their original decision granting Edelweiss a refund.

"This ruling highlights how crucial it is for government departments and authorities to handle such disputes with care," said [name], "any further changes or cancellations in initial approvals can have significant repercussions on business operations."

The Government has urged citizens to be vigilant regarding recent decisions involving the change of tax policies.

For more information regarding changes in tax regulations, please click this link.

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