AC Rejected GST Refund on Limitation: Punjab & Haryana HC directs Commissioner to take Action and imposes Penalty

The Punjab and Haryana High Court has directed the Commissioner to take action and imposed a penalty after the Assistant Commissioner (AC) rejected a GST refund claim on the grounds of limitation. The case involved a taxpayer who filed a refund claim for excess GST paid, which was rejected by the AC due to the claim being filed beyond the prescribed time limit. The taxpayer challenged the rejection, arguing that the delay was due to genuine reasons and should be condoned. The court observed that the AC failed to consider the merits of the case and directed the Commissioner to re-examine the claim. Additionally, the court imposed a penalty on the AC for not adhering to the principles of natural justice. This ruling underscores the importance of considering the merits of refund claims and adhering to procedural fairness in tax administration.