Refunds Filed Prior To GST Regime To Be Processed Under Section 142 (3) Of The CGST Act, 2017 – Madras High Court

The Hon’ble High Court of Madras High Court vide its order dated 08th March 2022 in the matter of Rainbow Stones Private Limited   Vs.  Assistant Commissioner (ST), Hosur in Writ Petition No. 27482 and W.M.P.  Nos 29000 & 29002 of 2021 held that if the refund application were filed prior to the introduction of Goods and Service Tax and was not processed at that point in time, has to be dealt with under Section 142 (3) for sanctioning and processing the refund claim after introduction of GST.

The Petitioner preferred the writ petition challenging the impugned order bearing Ref. No: GSTIN:33AADCR7947K1ZY/2017-18 dated 09.07.2021 and quash the same, directing the respondents to grant refund in the event of reversal of input tax credit carried forward by filing Form Tran -1.


  • The petitioner filed a refund claim in the erstwhile TNVAT Act, the department after considering the refund claim issued a show cause notice to the Petitioner.
  • The petitioner on 05.2016 duly filed a reply -cum- request to the aforesaid show cause notice stating that ‘we are the manufacturer and exporter of Granite Slabs and most of our sales are export only and less sales in domestic, thus unable to utilize ITC’. A request for sanctioning the refund was also made by the Petitioner.
  • The petitioner subsequently sent a reminder on 12.2016, however the respondent after the receipt of both, the reply-cum-request and the reminder, did not dispose/process the refund claim.
  • Thereafter the petitioner received the impugned order 07.2021 stating that its not eligible for refund as it pertains to erstwhile TNVAT regime and the present demand made has to be paid by the petitioner. Hence the present writ petition.

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