2026-VIL-192-ORI
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SGST High Court Cases

GST - Refund of excess tax payment - Sections 54 of the CGST Act, 2017 - Petitioner deposited tax twice due to mistake, once by utilizing credit ledger and later by cash ledger - Revenue rejected the refund claim on the ground that the application was filed beyond the period of limitation prescribed under Section 54 of the Act - Whether the application for refund is barred by limitation under Section 54 of the CGST Act – HELD - The Limitation period stipulated for making application under Section 54 of the CGST Act is not applicable to refund of tax paid under a mistake of law - When an amount is paid under a mistake of law, the period of limitation prescribed under the special statute (here, Section 54 of the GST Acts) would not apply, and the general principles under the Limitation Act would be applicable - The claim for refund is based on payment of tax under a mistake, which would be hit by the provisions of Article 265 of the Constitution of India prohibiting collection of tax without authority of law. The Revenue cannot retain taxes deposited twice in respect of the same transaction, particularly when it has acknowledged the fact of such double deposits being made by the petitioner - The order rejecting the refund application is quashed and the authorities are directed to consider the fresh refund application filed by the petitioner within a fortnight and decide the same within 7 days, failing which the refund amount shall carry interest at the rate of 6% per annum – The petition is allowed
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