Prem Polymers Vs Sales Tax Officer Class II/Avato (Delhi High Court)
In the case of Prem Polymers vs Sales Tax Officer Class II/Avato, the Delhi High Court addressed a writ petition seeking the processing of a GST refund. The petitioner, Prem Polymers, had filed an application for a refund of Rs. 14,10,742 in accumulated Input Tax Credit (ITC) for the period of April 2024, citing an inverted tax structure as the cause.
The petitioner’s counsel stated that despite multiple communications to the Department since September 2024, the refund application had not been processed. This failure to act, according to the petitioner, necessitated the court’s intervention.
The Delhi High Court, acknowledging the statutory timelines prescribed under Section 54 of the Central Goods and Service Tax (CGST) Act, issued a clear and decisive directive. The court ordered the tax department to process the refund and credit the amount to the petitioner without delay. Furthermore, the court mandated that the refund order be passed within a period of three weeks and that the amount, along with applicable interest, be credited immediately thereafter. The petition was disposed of on these terms. This judgment, while not citing specific judicial precedents, reinforces the judiciary’s role in ensuring administrative accountability and the timely resolution of tax matters.
