Introduction

The Hon’ble Karnataka High Court, in the case of Cultgear Private Ltd. v. Commercial Tax Officer [W. P. No. 6795 of 2024 dated April 02, 2024], addressed critical issues concerning the filing of appeals and the refund of amounts collected from the Assessee pending the constitution of the Goods and Services Tax Appellate Tribunal (GSTAT).

Facts of the Case

Cultgear Private Ltd. (“the Petitioner”) filed a writ petition challenging the order dated September 16, 2023 (“the Impugned Order”). The Petitioner sought directions to allow filing of the appeal against the Impugned Order within the extended period of limitation, specifically as and when the GSTAT is constituted. Additionally, the Petitioner requested a refund of the amount recovered from them, indicating a willingness to furnish a bank guarantee for the same.

Issue

The primary issue before the Court was whether the Petitioner is entitled to a refund of the amount recovered, given that the appellate tribunal has yet to be constituted.

Held

The Hon’ble Karnataka High Court, in W.P. No. 6795 of 2024, ruled in favor of the Petitioner, granting them the liberty to file the appeal before the GSTAT once it is constituted. Furthermore, the Court directed the Revenue Department to refund the amount recovered from the Petitioner, subject to the furnishing of a bank guarantee.