JVG Technology Private Limited Vs Commissioner CGST (Delhi High Court)
Delhi High Court has directed the Central Goods and Service Tax (CGST) Department to release a Goods and Services Tax (GST) Input Tax Credit (ITC) refund of over Rs. 5 crore to JVG Technology Private Limited, along with applicable interest. The court’s ruling, delivered in the case of JVG Technology Private Limited Vs Commissioner CGST, underscores that a refund cannot be withheld solely on the ground of an intended appeal by the department, especially when an appellate authority has already allowed the claim.
The petitioner, JVG Technology Private Limited, engaged in the export of mobile phones, had sought a refund of unutilized ITC amounting to Rs. 5,00,98,287/- for the months of September and October 2022. This claim was filed under Section 54(3)(i) of the CGST Act, 2017, which pertains to refunds of unutilized ITC on account of zero-rated supplies made without payment of tax.
Initially, the Assistant Commissioner, Central Tax GST West, Rohini, Delhi, rejected both refund applications on June 26, 2023, following the issuance of show cause notices. JVG Technology Private Limited subsequently challenged this rejection before the Appellate Authority, which, on December 11, 2023, allowed the refund claim. The Appellate Authority’s order specifically set aside the impugned orders, disposing of the appeals in terms of Section 107(12) of the CGST Act, 2017.
