Case Law Details
Solidum And Stars Guild LLP Vs Commissioner, Central Tax, Appeals-II, Delhi, & Anr. (Delhi High Court)
Introduction: The realm of GST (Goods and Services Tax) in India is evolving with each case that is brought before the judiciary. One such significant case, Solidum And Stars Guild LLP Vs Commissioner, Central Tax, Delhi, brings forth pertinent issues concerning the denial of GST refund based on irregularities by a single supplier.
The Impugned Orders: Solidum And Stars Guild LLP filed a petition against an order from August 5, 2021, whereby its application for a GST refund of INR 76,76,106 was rejected. This rejection was subsequently upheld by the Order-in-Appeal in May 2022, which further agitated the petitioner.
Backdrop of the Case: The crux of the dispute revolved around the petitioner’s claim for a GST refund, attributed to ITC on goods exported from November 2020 to March 2021. The Adjudicating Authority cited two primary reasons for the denial: the non-existence of one of the suppliers and discrepancies between the invoice and FOB values.
Siddhi Impex Controversy: The Adjudicating Authority’s investigations revealed that one of the suppliers, M/s Siddhi Impex, was non-existent at its registered place of business. This discovery played a pivotal role in the rejection of the petitioner’s refund claim. Moreover, the registration of M/s Siddhi Impex was later cancelled.
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