Vossloh Cogifer Turnouts India Pvt. Ltd. Vs State of U.P. (Allahabad High Court)
Refund to be paid in cash and not re-credited to the Electronic Credit Ledger where business is permanently closed and GST registration surrendered
Summary: The Allahabad High Court considered a writ petition concerning refund of GST where Rs. 1,10,72,753/- had been directed to be re-credited as Input Tax Credit in the Electronic Credit Ledger instead of being refunded in cash. The petitioner, M/S Vossloh Cogifer Turnouts India Pvt. Ltd., contended that it had permanently discontinued its business operations and surrendered its GST registration, rendering the Electronic Credit Ledger incapable of meaningful utilisation. The petition also challenged denial of statutory interest on the total refunded amount of Rs. 1,38,91,287/-, relying upon Section 56 of the UPGST Act, 2017. The Court noted that the impugned order dated 06.05.2026 directed Rs. 1,10,72,753/- to be re-credited as ITC, while the remaining portion of the total refund had been paid in cash. It was undisputed that the petitioner was no longer carrying on business and that the Electronic Credit Ledger had consequently ceased to be functional. Having regard to these circumstances, the Court held that there was no prohibition under the Act against making cash payment of the amount earlier directed to be re-credited as ITC. The Court therefore directed the concerned authorities to refund Rs. 1,10,72,753/- to the petitioner in cash, along with applicable interest, if any, in accordance with the provisions of the Act, within eight weeks from the date of the order. The writ petition was accordingly disposed of.
