Bombay High Court allows multiple GST refund applications for same tax period
The Court held that substantive refund entitlement cannot be denied merely due to procedural or technical objections where the claim is otherwise filed within limitation.
The Bombay High Court, in Valmet Flow Control Pvt. Ltd. v. Union of India & Ors. (2026-VIL-411-BOM), held that Section 54(1) of the CGST Act, 2017 does not expressly prohibit filing multiple refund applications for the same tax period. The Court observed that where a subsequent claim arises due to inadvertent omission in an earlier application and is otherwise filed within the prescribed limitation period, such claim cannot be rejected merely on technical grounds.
Background
The taxpayer had filed a consolidated refund application for the period July 2022 to September 2022. Subsequently, a separate refund application was filed for August 2022 in respect of an invoice inadvertently omitted from the earlier claim.
The department rejected the subsequent application on the ground that the relevant period had already been covered under the earlier refund claim. The Bombay High Court found this approach unsustainable and set aside the rejection order.
Key Observations
Section 54(1) does not contain any express prohibition against filing more than one refund application for the same tax period.
Refund entitlement cannot be denied merely on procedural or technical grounds where statutory conditions are otherwise satisfied.
Principles analogous to res judicata cannot be imported into refund proceedings to create an artificial restriction not contemplated under the statute.
Shree Renuka Sugars Ltd. v. State of Gujarat
The Bombay High Court also relied upon the Gujarat High Court ruling permitting supplementary refund applications in cases involving arithmetical errors in the original refund claims. The Gujarat High Court held that substantive refund entitlement cannot be defeated by technical objections or portal limitations.
Why this matters
This ruling will be relevant for taxpayers facing refund rejections due to inadvertent omissions, clerical errors, or restrictions on the GST portal. It reinforces the principle that procedural lapses should not defeat a lawful refund claim where the claim is otherwise maintainable in law and filed within time.
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