Tax / GST : GST Refund and Delay in Litigation / GST Department Files Petition After Expiry of 90 days

Tax / GST : GST Refund and Delay in Litigation /  GST Department Files Petition After Expiry of 90 days

GST Department has filed a petition in Supreme Court on 27 September 2025. 5 Defects have been notified in the petition on 4 October 2025. 

The case in this case touches the issue of refund under the State GST Act, 2017. 

Interestingly the petition is filed after more than 90 days from the date of the Judgment under challenge. It may be noted that in the clear proposition of law in State of MP v. Ramkumar Choudhary [2024] GCtR 3099 (SC) while refusing to condone the delay in litigation, it was directed that disciplinary action is to be taken against concerned government employees and costs are also to be imposed. 

In the Judgment under challenge [citation : [2025] GCtR 1580], the issue was related to refund and refund which was denied by Tax Department was directed to be paid and Department was also directed to pay interest to the petitioner.

If the law laid down in State of MP v. Ramkumar Choudhary [2024] GCtR 3099 (SC) is applied, the petition filed by GST Department after lapse of 90 days should be dismissed and disciplinary action should also be initiated against the officials. This will serve as a lesson for Tax Department officials to perform their public duties on time.