Stanlee (India) Enterprises Pvt. Ltd. Vs Commissioner of CGST (Delhi High Court)
The Delhi High Court examined a writ petition challenging the rejection of IGST refunds claimed on exports for the months of August, September, and October 2024. The refunds pertained to IGST paid on exports and were claimed through shipping bills uploaded on the ICEGATE portal. The refund applications were rejected by the Department through RFD-08 notices and a subsequent rejection order dated 3 February 2025. The sole ground for rejection was an alleged excess availment of Input Tax Credit (ITC) during Financial Year 2019–20, based on a comparison between GSTR-2A and GSTR-3B.
The petitioner contended that the refunds related to exports made in 2024 and had no connection with the alleged excess ITC of an earlier financial year. It was also argued that no show cause notice (SCN) had been issued under Sections 73 or 74 of the CGST Act in respect of the alleged excess ITC for FY 2019–20. The petitioner further submitted that although a personal hearing was attended, no effective hearing was granted, and that a departmental audit covering the period from 1 April 2018 to 31 March 2024 had already been conducted, pursuant to which demands for other financial years were raised and paid. Notably, the audit report did not raise any objection relating to ITC for FY 2019–20.
