Goods and Services Tax Updates- Recent High Court Judgements in favour of the Assessee

These judicial developments are highly relevant from a broader taxation advisory services perspective, especially for businesses dealing with GST refund timelines, limitation disputes, and procedural lapses in adjudication. In complex cases involving overlapping compliance exposure, integrated support under direct tax advisory services may also be required to ensure holistic tax risk management.

1. The Hon’ble High Court of Madras Permitted Exclusion of COVID-Impacted Period for GST Refund Deadline

In the case of Acrologic Business Solutions (P.) Ltd. Vs. Assistant Commissioner of Central Taxes (Madras High Court), (2024) 381 (Madras) (11-01-2024)

The High Court accepted the petitioner’s contention and held that the petitioner was entitled to avail the exclusion provided by Notification No. 13/2022-CT dated 05-07-2022.

The notification clearly stated that the period from 01.03.2020 to 28.02.2022 should be excluded for computing the limitation period for filing a refund application under Section 54 of the CGST Act.

The Court set aside the appellate order, observing that:

• The rejection was solely on the ground of limitation
• No substantive reasoning was provided for denial of refund

Accordingly, the Court directed the Assistant Commissioner to:

• Refund the amount of Rs. 7,34,732/-
• Complete the process within two months

The writ petition was allowed without any order as to costs.

2. The Hon’ble High Court of Madras Held That Non-Consideration of Reply to Show Cause Notice Invalidates GST Order

In the case of Make My Trip (India) (P.) Ltd. Vs. State Tax Officer (Madras High Court), (2024) 492 (18-01-2024)

The petitioner challenged the order on the grounds that:

• The revenue authorities failed to consider the reply submitted against the show cause notice (Form DRC-01)

The Hon’ble High Court held:

• Non-consideration of the assessee’s reply results in denial of reasonable opportunity
• Such procedural lapse prejudices the assessee’s rights

Without commenting on the merits of the case, the Court:

• Quashed the order
• Remanded the matter back to the assessing officer
• Directed reconsideration after providing adequate opportunity

This ruling reinforces the principle of natural justice in GST adjudication proceedings under Section 73 of the CGST Act.

Additional Resources

• GST alert by Madras High Court – appellate authority to decide on merits without limitation barrier
• High Court of Delhi on GST – opportunity to respond to show cause notice
• Input tax credit refund allowed by High Court – GST case insight
• GST litigation and dispute resolution framework