State of Jharkhand & Ors. v. M/s BLA Infrastructure Pvt Ltd.

GST update /2026-27/0031

GST UPDATE

Refund of Statutory Pre-deposit for filing appeal and interest thereon should be governed by Section 107(6) and Section 115 of CGST Act 2017 instead of Section 54 of CGST Act 2017.

Civil Appeal No.: 56452 of 2025 (Diary No.)

Court: Supreme Court

Case Title: State of Jharkhand & Ors. v. M/s BLA Infrastructure Pvt Ltd.

Outcome: Civil Appeal was allowed however refund to be granted to respondent along with interest.

Judgement Date: 09.01.2026

BRIEF FACTS OF THE CASE:

Revenue Department (petitioner) rejected refund application made by the M/s BLA Infrastructure Pvt Ltd (respondent) in relation to the statutory pre-deposit on the ground that the refund application was time-barred. The matter travelled to High Court of Jharkhand where it was held that the statutory pre deposit refund should be governed by Section 54 of CGST Act and therefore revenue department contention that the refund application was time barred was set aside. Pursuant to which, petitioner department preferred a civil appeal before the Hon’ble Supreme Court.

QUESTION BEFORE HON’BLE COURT:

Whether refund of pre-deposit would be governed by Section 107(6) read with Section 115 or Section 54 of CGST Act?

BRIEF ARGUMENTS BY PETITIONER:

Petitioner submitted following contentions: -

• Revenue Department contended that refund to be made in relation to statutory pre deposit should be governed by Section 107(6) of CGST Act 2017 read with Section 115 of Jharkhand GST Act.

• High Court erred in interpreting Section 54 and granted relief. Hence, the decision of High Court allowing the refund application to the respondent is invalid.

• Therefore, impugned order should be set aside.

FINDINGS & JUDGEMENT:

Following are the findings of the Court in the instant case:

• The delay in filing of appeal was condoned and leave was granted. The Apex court held that there is no need to issue notice to respondent as there is no adverse thing against them. But if they feel that there is something adverse against them then they can ask for reopening of matter.

• The Apex Court observed that the refund of statutory pre-deposit was subject matter of Sec 107(6) read with Section 115 of Jharkhand GST Act, hence, granting relief by Jharkhand High Court under Section 54 was invalid.

• Based on above observations it was held that amount to be refunded to the respondent shall be refunded along with interest thereon in accordance with law within a period of 4 weeks.

The respondent should be provided with refund of the pre deposit along with interest.

Various Sections, Rules, Circulars, Notifications and case laws referred in the instant GST Update:

Section 54, Section 107(6), Section 115 of CGST Act 2017

CA PRADEEP JAIN

This is solely for educational purpose

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