Truth Fashion Vs Commissioner of DGST Delhi & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition seeking directions for release of a GST refund of ₹18,33,000 in compliance with an appellate order dated 10.05.2024 and an earlier High Court order dated 18.11.2024, along with statutory interest under Section 56 of the DGST/CGST/IGST Acts, 2017. In the earlier proceedings, the Court had recorded the respondents’ statement that the refund claim would be disposed of expeditiously, preferably within three weeks, subject to any orders obtained in a statutory appeal. Despite these directions, the refund was not released, although the Objection Hearing Authority had already allowed the petitioner’s objections and set aside the order rejecting the refund claim. The respondents relied on Section 54(11) of the CGST Act, 2017, contending that the Commissioner’s decision to file an appeal justified withholding the refund. The High Court rejected this contention, holding that Section 54(11) applies only where the refund order is actually the subject matter of an appeal, and a mere decision to prefer an appeal does not satisfy that requirement or place the order in abeyance. Relying on the Division Bench decision in Alex Tour & Travel (P) Ltd. vs. Commr. (CGST), the Court held that the Revenue cannot ignore or refuse to implement an appellate order in the absence of any stay granted by a competent court. The writ petition was allowed, and the respondents were directed to release the refund forthwith along with statutory interest payable in accordance with law, while retaining their right to pursue the statutory remedy against the appellate order.
