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2023 (6) TMI 446 - RAJASTHAN HIGH COURTRefund of GST - Export of goods - Alleged inaction on the part of the respondents in not finalizing petitioner’s claim for refund - use of fake invoices to claim refund - Section 54 of the CGST Act read with provisions contained in Rule 96 of the CGST Rules - HELD THAT:- The application for grant of refund once filed is required to be decided one way or the other and cannot be kept pending with an oral information that the claim has been withheld. The provisions contained in Section 54 of the CGST Act read with provisions contained in Rule 96 of the CGST Rules provides for refund of tax. Once an application for grant of refund is submitted, the application is required to be decided in accordance with the provisions of law applicable. In this case, the respondents have sought to justify by stating why they have not taken decision in the matter. However, there is no order passed by the competent authority on petitioner’s application for refund. The refund application, therefore, is required to be decided and cannot be kept pending indefinitely on the ground of pendency of certain proceedings. The effect of pendency of proceedings could be a matter of consideration while exercising discretion in deciding the claim for refund. In the present case, the proceedings were initiated in the year 2020 and 2022. If the statement at the Bar made by the learned counsel for the petitioner has to be accepted, the second show cause notice dated 11.03.2022 has been brought to its logical conclusion. As far as the first show cause notice dated 17.07.2020 is concerned, the same is still pending. Since the present is a case of an allegation of raising fake invoices and the matter is under investigation, we are not inclined to issue a direction for refund but to direct the competent authority to decide petitioner’s refund application in accordance with law keeping in view the mandate of Section 54 of the CGST Act and provisions contained in Rule 96 of the CGST Rules and all relevant considerations within a period of 60 days. The writ petition stands disposed of.
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