Shree Radhe Vallabh Traders Vs Commissioner Central Goods And Service Tax (Delhi High Court)
The Delhi High Court has dismissed a petition filed by M/s Shree Radhe Vallabh Traders, seeking the release of an IGST refund of over Rs. 1.19 crore. The court ruled that the refund could not be granted until the trader’s Goods and Service Tax (GST) registration, which had been cancelled with retrospective effect, was restored. The judgment highlighted a failure by the petitioner to disclose the cancellation of their GST registration and to cooperate with the tax authorities during the refund process.
The background of the case reveals that M/s Shree Radhe Vallabh Traders, which held a valid GSTIN and Import Export Code (IEC), had exported goods to various countries since 2019. The company claimed to be entitled to a significant IGST refund based on these exports. However, in February 2020, the company was flagged as a “risky exporter.” The tax authorities initiated an audit and requested documents, which the petitioner claims were provided.
Despite these submissions, the refund was not sanctioned. The petitioner had previously filed a writ petition, WP(C) 6388/2020, to compel the release of the refund. During those proceedings, the tax authorities filed counter affidavits alleging that the exporter appeared to be “non-existent” and not “bonafide.” A physical verification conducted by the authorities in July 2020 had concluded that the company was not operating at its registered address. The authorities also noted that no Bank Realization Certificate (BRC) had been provided for previous shipments.
