2023 (10) TMI 477 - HC - GST

Seeking disbursal of amount of refund as claimed by the petitioner - reluctance of the respondents to comply with the order passed by the Appellate Authority - right to appeal - HELD THAT - Notwithstanding that the respondents may have a right to appeal the order dated 07.04.2021 before the Appellate Tribunal, it cannot be accepted that the respondents can ignore the said order and not comply with the same, without a competent authority or court staying the said order. The issue involved in this petition is covered by the earlier decision of this Court in the case of Alex Tour and Travel Private Limited v. Assistant Commissioner, CGST, Division-Janakpuri 2023 (5) TMI 505 - DELHI HIGH COURT where it was held that It cannot be accepted that the Revenue can ignore the orders passed by the appellate authority mainly on the ground that it proposes to file an appeal. The respondents are directed to forthwith disburse the refund as sanctioned by the Appellate Authority - Petition allowed.

Summary

Issues involved:
The petition for directions to disburse refund claimed for the period March, 2020. Controversy over compliance with the order passed by the Appellate Authority.

Refund Claim Dispute:
The petitioner sought refund of input tax credit (ITC) for goods exported without tax payment in March, 2020. The Adjudicating Authority rejected most of the refund claim, citing wrongful ITC availed by the petitioner. Upon appeal under Section 107 of the CGST Act, the Appellate Authority substantially allowed the appeal, directing a refund of Rs. 61,79,004.20 and setting aside the rejection of the claim.

Non-Disbursement of Refund:
Despite the favorable decision by the Appellate Authority, the respondents failed to disburse the refund. The respondents claimed they were unable to file an appeal before the Appellate Tribunal due to its non-constitution. The respondents referred to the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019, extending the time period for filing an appeal before the Tribunal.

Judicial Decision:
The Court noted the controversy regarding the extension of limitation period by the Central Government and emphasized the respondents' obligation to comply with the Appellate Authority's order unless stayed by a competent authority or court. The Court relied on a previous decision and directed the respondents to immediately disburse the refund sanctioned by the Appellate Authority. The order clarified that the respondents could still pursue statutory remedies against the decision or seek recovery of the disbursed amount if successful in their remedies.