Ikiraon Technologies Pvt. Ltd. Vs Assistant Commissioner (Delhi High Court)
Delhi High Court restrains GST authorities from taking coercive action on refund recovery until GST Appellate Tribunal is functional
In the case of Ikiraon Technologies Pvt. Ltd. v. Assistant Commissioner, the Delhi High Court restrained GST authorities from taking coercive action to recover a refund from the company. The company, an electronics trader, had initially received a refund of approximately ₹13.43 crores, which was subsequently set aside by the Appellate Authority. The Appellate Authority’s decision was allegedly based on concerns about the physical verification of the company’s business premises. The company, however, contended that a full verification had been completed and that the grounds for reversal were baseless. Aggrieved by the Appellate Authority’s order, Ikiraon Technologies Pvt. Ltd. filed a writ petition with the Delhi High Court. The company argued that with the GST Appellate Tribunal (GSTAT) not yet functional, it had no statutory appellate remedy available to it, leaving it vulnerable to coercive action. The court acknowledged that the Appellate Authority’s order was ordinarily appealable to the GSTAT. However, due to the non-operational status of the Tribunal, the court intervened to provide interim protection to the taxpayer. The Delhi High Court ordered that no coercive steps be taken against the petitioner in the meantime. The court also directed the GST authorities to file a counter affidavit and scheduled the matter for a future hearing. This interim order aligns with principles established in other cases where courts have exercised writ jurisdiction to prevent irreparable harm or coercive recovery in the absence of a functional GSTAT. It highlights the judiciary’s role in ensuring taxpayers have a forum to challenge disputed orders and are not subject to adverse actions when the normal statutory appeal process is unavailable.
