Decided 23 October 2026. The Gujarat High Court has held that a taxpayer who won an appeal against a section 129 demand cannot lose the refund merely because the department uploaded the summary of the appellate order (Form GST APL-04) more than two years late. The date of uploading APL-04 was treated as the relevant date for limitation, and the refund was ordered with interest.
Case at a glance
| Case | Panila Chem Ltd. & Anr. v. State of Gujarat & Ors. |
| Forum | Gujarat High Court (Justice A.S. Supehia and Justice Vaibhavi D. Nanavati) |
| Case No. | R/Special Civil Application No. 4610 of 2025 |
| Date of judgment | 23 October 2026 |
| Refund | ₹5,41,032 with interest |
| Key provisions | Sections 54(1), 56 and 129 CGST Act; Form GST APL-04 |
| Result | Writ allowed; refund with 6% interest, 9% if delayed beyond 12 weeks |
Facts of the case
Goods of the company were intercepted at Bhavnagar on 27.11.2019 on the allegation that the e-way bill had been rejected. Tax and penalty of ₹5,41,032 were imposed in Form MOV-09 and paid to release the vehicle.
On 28.02.2022 the appellate authority held the e-way bill was active, found no intent to evade, set aside the demand and directed refund. A physical copy was handed over on 08.03.2022, but the APL-04 summary was uploaded on the portal only on 03.06.2024.
The company applied for refund the very next day, 04.06.2024. Both the proper officer and the appellate authority rejected it as filed beyond two years from the appellate order.
Issue before the High Court
Where the appellate order directing a refund is uploaded on the portal (APL-04) very late, from which date does the two-year limit under section 54(1) run?
What the High Court held
- In these circumstances the date of uploading APL-04 (03.06.2024) was treated as the relevant date. The application filed on 04.06.2024 was therefore within time.
- The word "may" in section 54(1) does not make the time limit optional, but a rigid reading cannot be used to validate the illegal retention of money that the appellate authority ordered to be refunded.
- Keeping the amount would indirectly revive a demand that had already been set aside. The State must act fairly and should help taxpayers implement appellate orders rather than put procedural obstacles in their way.
- Interest: since the company did not apply when it got the physical copy and itself sought only 6%, the Court awarded 6% from 15.08.2024. If the refund is not paid within 12 weeks, interest will be 9%.
- If the portal does not accept the application, the company may file it offline and the department must process it.
Practical takeaways for taxpayers
- After winning an appeal, file the refund application promptly on receipt of the order; do not wait for the portal upload.
- If APL-04 has not been uploaded, write to the department and keep proof. Delay by the department can support a later limitation argument.
- Refunds arising from appellate orders that have attained finality can carry interest up to 9% under the proviso to section 56.
- An offline refund application is a valid fallback where the portal blocks the claim.
Frequently asked questions
What is the time limit to claim refund after winning a GST appeal?
Two years from the relevant date under section 54. In this case the High Court treated the date of uploading APL-04 as the relevant date because the upload was delayed.
Is interest payable on such refunds?
Yes. The proviso to section 56 allows interest up to 9% where the refund arises from an appellate order and is not paid within 60 days of the application.
Facing a similar GST dispute?
GST Folio prepares replies to show cause notices, appeals before the Appellate Authority and GSTAT, refund claims and ITC reconciliations for businesses across India. Call or WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.
This summary is based on the order of the Gujarat High Court in R/Special Civil Application No. 4610 of 2025. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.