GST Refund Cannot Be Rejected Without Considering Documents Already On Record: Bombay High Court

The Bombay High Court on 16 April set aside an order rejecting a GST refund claim after finding that the authorities failed to properly consider documents submitted by the taxpayer, including the Foreign Inward Remittance Certificate (FIRC).

A Division Bench comprising Justices G. S. Kulkarni and Aarti Sathe held that when relevant documents are already placed on record, the refund claim must be examined fairly and through a reasoned order. It observed:

“No prejudice would be caused to the Department if the issue is re-examined and all the documents submitted by the Petitioner in support of the refund claim are duly considered.”

The issue before the Court was whether the GST department could reject the refund application of Interactive Brokers Software Services Private Limited on the ground that Bank Realisation Certificate/FIRC relating to an export invoice had not been produced, despite the company claiming that those documents had already been furnished.

The petitioner challenged the order dated 27 March 2025, contending that the refund rejection was passed without application of mind and in disregard of documents already submitted, including the FIRC and GST invoice issued through HDFC Bank.

The Department submitted that the petitioner had failed to produce the Bank Realisation Certificate for Invoice No. SA/2019-20/05 dated 9 April 2020 despite opportunities. The company, however, contended that the documents had already been placed on record and established receipt of export remittances.

The Court observed that refund claims cannot be rejected mechanically when the taxpayer asserts that required documents have already been submitted. It held that the authority must verify such documents and pass a speaking order after hearing the taxpayer.

The Bench quashed the impugned order and remanded the matter to the Assistant Commissioner, Division-V, for de novo adjudication. It directed the authority to pass a reasoned order after considering all documents on record and after granting an opportunity of hearing.

Accordingly, the High Court disposed of the writ petition.

Appearance for the Petitioner: Mr. Bharat Raichandani a/w Mr. Suraj Ghadigaonkar

Appearance for the Respondent: Mr. Himanshu Takke, AGP for Respondent-State, Ms. Shruti Vyas a/w. Ms. Niyati Mankad a/w. Ms. Priyanka Singh, for Respondent No.3 & 4.