Alkesh Tacker HUF Vs Union of India & Ors. (Delhi High Court)
The Hon’ble Delhi High Court in Alkesh Tacker HUF v. Union of India & Ors., [W.P.(C) 2486 of 2025, dated August 12, 2025] set aside rejection of refund of unutilized Input Tax Credit (“ITC”) worth Rs. 10.05 lakhs on zero-rated exports. The Court held that the Department’s ground that the Letter of Undertaking (“LUT”) was filed “after exports” was specious and untenable, since actual exports commenced only post filing of LUT. The Court reiterated that refund claims on zero-rated supplies, governed by Rule 89 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) and Circular No. 125/2019, are in the nature of incentives to exporters and cannot be arbitrarily withheld.
Facts:
Alkesh Tacker HUF (“the Petitioner”), engaged in exports of cordless sets and other goods, filed a refund application on 12 August 2023, seeking refund of INR 10,05,341/- (ITC accumulation on zero-rated supplies for Sep–Dec 2021).
The CGST Department (“the Respondent”) issued a Show Cause Notice (“SCN”) sought multiple documents including declarations under Section 54(3), CGST Act proviso, undertakings under Sections 16(2)(c), CGST Act and Section 42(2) CGST Act, statements under Rule 89(2) & (4) of the CGST Rules, LUT, and C.A. Certificate.
