Special Commissioner Zone – 11 & Ors. Vs HYBON Technologies Private Limited (Supreme Court of India)
The Supreme Court in the case of Special Commissioner, Zone 11 & Ors. v. Hybon Technologies Private Limited [SLP Diary No. 21165 of 2025, order dated August 29, 2025] dismissed the appeal filed by the revenue authorities against the Delhi High Court order, which held that the authority under Section 16 of the IGST Act read with Section 54 of the CGST Act does not empower revenue officers to examine the admissibility of Input Tax Credit (ITC) while adjudicating refund claims.
Facts:
In the Delhi High Court case of Hybon Technologies Private Limited v. Special Commissioner, Zone 11 & Ors. [W.P.(C) 3137/2025, order dated March 18, 2025], the Hybon Technologies Private Limited (“the Petitioner”) filed a claim for refund of ITC accumulated under the GST regime. During adjudication, revenue authorities examined and disputed admissibility of the ITC as part of the refund claim process.
The Special Commissioner, Zone 11 & Ors. (“the Respondent”) rejected the refund claim primarily by scrutinizing the ITC admissibility, leading to denial of refund.
The Petitioner contended that the statutory provisions governing refund do not authorize revenue to decide issues of ITC eligibility or admissibility during refund adjudication under Sections 16 and 54 of the Integrated GST and CGST Acts, respectively.
