GST Refund Claims Litigation

Expert Legal Representation for GST Refund Claims Litigation

The timely receipt of GST refunds is crucial for maintaining the working capital and financial health of any business. However, the process is often fraught with complexities, leading to unjust rejections, inordinate delays, and disputes with the tax authorities. When your legitimate refund claim is stuck or denied, it initiates the need for robust GST refund claims litigation.

At AMLEGALS, our dedicated team of indirect tax lawyers possesses deep expertise in navigating the intricate landscape of GST laws. We represent businesses before all judicial forums, from the Adjudicating Authority to the High Court, to challenge wrongful rejections and secure your rightful refunds.

Why Does GST Refund Litigation Arise? Common Grounds for Disputes?

A refund claim can be rejected or disputed for numerous reasons, often stemming from a narrow interpretation of the law by the department. Our experience shows that litigation is most commonly triggered by:

• Rejection of ITC on Inputs/Input Services: Disagreements over the eligibility of Input Tax Credit (ITC) claimed, especially in cases of inverted duty structure refunds.
• Principle of Unjust Enrichment: The department may allege that the burden of the tax has been passed on to the end consumer, and therefore, granting a refund to the business would result in unjust enrichment.
• Time-Barred Claims: Disputes over the calculation of the two-year limitation period for filing refund claims under Section 54 of the CGST Act.
• Procedural Lapses: Rejections based on minor procedural errors in documentation or filing, even when the substantive claim is valid.
• Mismatch in Data: Discrepancies between shipping bills, GSTR-1, and GSTR-3B for zero-rated supplies (exports and supplies to SEZ).
• Deficiency Memos & Show Cause Notices: Improper issuance of deficiency memos or show cause notices that are vague or legally untenable.

Our Comprehensive Approach to GST Refund Claims Litigation

AMLEGALS provides end-to-end strategic legal support to unlock your blocked capital. Our litigation process is meticulous and result-oriented.

1. Scrutiny of Rejection Order: We begin with a thorough analysis of the refund application, the deficiency memo, the show cause notice, and the final rejection order to identify the specific legal and factual grounds of the dispute.
2. Drafting and Filing Appeals: We prepare and file legally sound appeals before the Commissioner (Appeals). Our submissions are built on a strong foundation of statutory provisions, relevant case laws, and circulars to counter the department’s objections effectively.
3. Representation Before Appellate Forums: Our lawyers skillfully argue your case before the Commissioner (Appeals) and the GST Appellate Tribunal (GSTAT). We ensure your position is presented with clarity and backed by compelling evidence.
4. High Court Writ Petitions: In cases of significant procedural violations, inordinate delays, or a violation of the principles of natural justice, we do not hesitate to approach the High Court by filing a writ petition to seek immediate relief for our clients.

Case Studies