HC directs GST Refund due to non supply of goods


HC directs GST Refund due to non supply of goods


Karnataka HC – Nam Estates (P.) Ltd. v. Joint Commissioner of Commercial Taxes (Appeals-I) [WRIT PETITION NO. 9075 OF 2024]

A perusal of the material on record would indicate that pursuant to the Agreement dated 29.05.2017 entered into between the petitioner and its vendor by name viz., M/s. Mavin Switchgears and Control Pvt.Ltd., the petitioner paid advance of Rs.14,08,79,262/- to the vendor as well as GST of Rs.2,53,58,268/-. Subsequently, the vendor did not supply goods under the contract to the petitioner leading to cancellation of the contract.

The petitioner called upon the vendor to refund the entire advance amount. Since, the vendor did not refund the aforesaid amount of Rs.14,08,79,262/- back to the petitioner, the petitioner recovered the same by encashing the bank guarantee furnished by the vendor.The GST amount had been paid by the vendor to therespondent authority.The respondent authority issued a show cause notice and subsequently rejected the assessee’s refund application without clear reasoning.

The impugned order was found to be unjustified and the respondent authority was directed to refund the entire GST amount to the assessee.


The copy of the order as under:

Krishnakant Jakhotia
Mobile No :- 9422507911
Email Id :- taxtalknew@gmail.com