Facts of the case:

The case arose from a dispute concerning the refund of a statutory pre-deposit made by the assessee for maintaining an appeal under the Jharkhand Goods and Services Tax Act, 2017. The assessee had succeeded in appeal and became entitled to a refund of the amount deposited in terms of Section 107(6) of the Jharkhand GST Act. The Jharkhand High Court, while granting relief, examined the refund entitlement by interpreting Section 54 of the Act, which generally governs refunds. Aggrieved by this approach, the State of Jharkhand approached the Supreme Court, contending that the refund of an appellate pre-deposit does not fall under Section 54, but is specifically covered by Section 107(6) read with Section 115 of the Act.

Issue:

Whether the refund of a statutory pre-deposit made for filing an appeal under the Jharkhand GST Act is governed by Section 54 (general refund provision) or by Section 107(6) read with Section 115 of the Act.

Held that:

The Supreme Court accepted the submission of the learned senior counsel for the State and held that the refund of a statutory pre-deposit made for maintaining an appeal is relatable exclusively to Section 107(6) read with Section 115 of the Jharkhand GST Act.

The Court observed that, to this extent, the High Court erred in undertaking an interpretative exercise under Section 54 of the Act, as such an exercise was unnecessary and legally misplaced. Accordingly, the Supreme Court clarified the correct statutory position and set aside the High Court’s interpretation of Section 54 insofar as it related to refund of appellate pre-deposit.

The appeal was disposed of with a direction that the refundable amount be returned with interest in accordance with law within four weeks.

Case Name: State of Jharkhand & Ors. Versus M/s. Bla Infrastructure Private Limited. dated 09.01.2026

To read the complete judgement 2026 Taxo.online 40