Bombay High Court Orders ₹3.14 Cr Refund for IBM India Pvt. Ltd.

The Bombay High Court has ordered IBM India Pvt. Ltd. to receive ₹3.14 Cr as a refund for GST pre-deposit, dismissing the tax authority's argument that pending appeal cannot affect the dropped demand.

On August 28, a Division Bench of Justices M.S. Karnik and Sandesh D. Patil allowed IBM India Pvt. Ltd.'s petition challenging the rejection of its claim for refund of ₹3.14 crore.

The court held that under the erstwhile indirect tax regime, the amount paid as a condition precedent for hearing an appeal does not bear the character of duty but is only a security deposit.

The case arose after the tax authorities raised a demand of about ₹48.96 crore against IBM India.