Shivani Gadhavi
Published On: January 24, 2022 at 16:54 IST
The Uttarakhand High Court recently put a Stay on operations happening on circular issued by the Revenue Authorities based on Petition that challenges the process of filing of refund in a chronological manner described in the Circular.
The Uttarakhand High Court Bench of Justices Sanjay Kumar Mishra and Alok Kumar Verma put a stay on Paragraph 8 of the Circular Number 125/44//2019-GST of November 18, 2019.
The Appellant in the present Case cited the Case M/s Pitambra Books Pvt Ltd V Union of India and Ors, whereby the Petitioner had moved to the Delhi High Court Alleging that the company’s Rights were being violated and affected due to the issuing of the circular.
It was Alleged by the Petitioner in the Delhi Court that Rights under Article 286(1) of the Indian Constitution with Section 16 of the Integrated Goods and Services Act, 2017 and Section 54 of the Central Goods and Services Act, were violated and that due to the Circular, the company was deprived of availing benefits for refund of unutilized Input Tax Credit.
The Delhi High in that Case had stated, “In exports, the availability of the rotation of funds is essential for the business to thrive. Moreover, businesses do not run according to the whims of the executive authorities.”
The Delhi High Court had observed that the block posed by the Revenue Authorities under the Circular deprived the Petitioner’s right to avail benefits of incentives offered by the Law in order to achieve a valuable foreign exchange and that the Authorities cannot deprive anyone to procure benefits provided by Law.
In vide of the aforementioned circumstances and facts of the cited Case, Paragraph 8 of the Circular was put on a Stay by the Delhi High Court. The Appellant in the current Case cited the above-mentioned case and sought for directions by the Uttarakhand High Court to put a Stay on the Circular.
The Uttarakhand High Court has accordingly put a Stay on the Circular and has posted the matter for further hearing on March 10, 2022.