Appeal on account of refund pending
Clause c of Rule 3(1) of draft GST Refund Rules provide that provisional refund may be granted subject to condition that no proceedings of any appeal, review or revision is pending on any of the issues which form the basis of the refund and if pending, the same has not been stayed by the appropriate authority or court.
Pendency of appeals from current regime is no fault of taxable person. This also renders rule 3 inoperative due to large pendency of appeals on account of refund rejected on frivolous grounds and non-disposal by appellate authorities for years.
It is suggested that clause c of rule 3(1) be deleted.