Kanwaljit Singh Mujral Vs Pr Commissioner, Central Tax
Date: September 18, 2023
Subject Matter
Department to process refund of GST Credit of deceased Taxpayer
Summary
The case involves a petitioner who has filed petitions seeking a refund for two financial years. The taxpayer, who has since passed away, had filed applications for the refund, but they were not processed. The petitioner claims that the deceased taxpayer was entitled to the refund, and their grievance is that the claim has not been processed. The respondent argues that the heirs of a deceased taxpayer can transfer the tax credit to a new GST registration if the business is carried on by the heirs, but refund for the period prior to the new registration is not permitted. The petitioner had transferred the accumulated tax credit to a new GST number but later found out that their claim for a cash refund cannot be processed. The petitioner wants the refund in cash, not to carry forward the tax credit for future liabilities. The petitioner has already reversed the tax credit to the account of the deceased taxpayer. Similar petitions were filed earlier and disposed of by the court. Now, the court has directed the petitioner to file fresh refund applications with their signature as the authorized signatory and the husband of the deceased taxpayer. The court has also directed the respondents to process these fresh applications and remit the tax credit with applicable interest to the bank account linked to the specified GST number.
1. The petitioner has filed the present petitions, inter alia, praying that direction be issued to the respondents to refund the sum of ₹ 20,54,840/- for the Financial Year 2020-2021 [subject matter of W.P.(C) No. 8862/2023] and the sum of ₹ 38,25,077/- in respect of Financial Year 2021-2022 [subject matter of W.P. (C) No. 8916/2023].
2. In the present case, the taxpayer, Smt. Malvinder Kaur Mujral, has expired. The petitioner – husband of the deceased taxpayer – had filed applications for refund in respect of goods exported by the taxpayer, but the same were not processed.
3. There is no dispute that the deceased taxpayer was entitled to the refund of the amount as claimed. The petitioner’s grievance is that his claim for refund has not been processed.
4. It is contended by Mr Godiyal, the learned counsel for the respondent that the heirs of a deceased taxpayer can transfer the tax credit to the new GST registration if the business of the deceased taxpayer is carried on by his/her heirs. The same can be used to discharge the liability of the business but the system does not permit refund pertaining to the period prior to the new registration. However, the system does permit refund pursuant to the orders passed by the court.
5. The petitioner (husband of the deceased tax payer) was advised to transfer the accumulated tax credit to a new GST number in respect of the same business. The petitioner (husband of the deceased tax payer) had thus taken the necessary steps to transfer the accumulated tax credit to a new GST number obtained in his name. However, subsequently, it was discovered that although he can utilize the transferred credit for discharge of further tax liabilities in respect of the said business, his claim for refund in cash cannot be processed, notwithstanding that the original tax payer was so entitled to such refund.
6. The petitioner is not interested in carrying forward the accumulated tax for discharge of future liability, and is interested in obtaining the refund. He has since reversed the tax credit to the account of the deceased tax payer.
7. Similar petitions were filed by the petitioner in respect of the earlier tax periods [W.P.(C) No. 15342/2022 and W.P.(C) No. 15430/2022]. Those petitions were disposed of by this Court by an Order dated 07.12.2022.
8. Ms Godiyal submits that the present petition be also disposed of in terms of the directions issued in WP(C) No. 15342/2022 and WP(C) no. 15430/2022.
9. In view of the above, the present petitions are disposed of with the following directions:
(i) The Petitioner will file fresh refund applications with his signature as the authorized signatory and husband of Late Smt. Malvinder Kaur Mujral [GSTN 07ADJPM9513E1Z1];
(ii) The Respondents are directed to process these fresh applications and remit the tax credit along with applicable interest to the bank account linked to GSTN 07ADJPM9513E1Z1;
(iii) The Petitioner has indicated that GSTN 07ADJPM9513E1Z1 as well as the bank account linked to it are still operational.