Truth Fashion Vs S.K Singh Special Commissioner & Anr. (Delhi High Court)
In , the Delhi High Court dealt with a petition alleging wilful disobedience and non-compliance with directions issued earlier in W.P.(C) 486/2025 concerning release of a GST refund along with statutory interest.
The dispute originated from a refund rejection order dated 05.02.2024 passed by the Proper Officer/Assistant Commissioner, Department of Trade and Taxes, Government of NCT of Delhi in GST RFD-06. The petitioner challenged the rejection before the Objection Hearing Authority/GST Additional Commissioner. By order dated 10.05.2024, the appellate authority allowed the appeal and set aside the rejection order, holding that the refund rejection was not justified or tenable under the CGST/DGST provisions and rules.
Despite the appellate order, the refund was not processed. Consequently, the petitioner approached the Delhi High Court through W.P.(C) 15886/2024. On 18.11.2024, the Court directed the respondents to ensure that the refund claim was processed expeditiously, preferably within three weeks, while clarifying that the direction would remain subject to any statutory appeal that may be preferred by the respondents and any consequential orders passed therein.
As the refund still remained unpaid, the petitioner filed W.P.(C) 486/2025 seeking compliance with the earlier orders. During those proceedings, the respondents relied upon Section 54(11) of the Central Goods and Services Tax Act, 2017, contending that since the Commissioner had decided to prefer an appeal against the order granting refund, the refund could be withheld.
