Ma Agro Vs Deputy Commissioner of State Tax (Bombay High Court)
The Bombay High Court dealt with a writ petition filed by the petitioner seeking enforcement of an appellate order directing refund of a substantial GST amount. By an order dated 21 August 2025, the Appellate Authority had directed the Deputy Commissioner of State Tax to refund ₹7,27,83,010 to the petitioner along with applicable interest under Section 56 of the Central Goods and Services Tax Act, 2017. Despite this clear direction, the refund was not released.
The petitioner approached the High Court contending that the tax authorities were delaying compliance with the appellate order on the ground that an appeal against the said order was contemplated. It was argued that mere intention to file an appeal could not justify non-implementation of a binding appellate order. Reliance was placed on a decision of the Delhi High Court which held that withholding refunds on the ground of a proposed appeal would undermine the rule of law.
On 25 November 2025, the Court heard the parties and granted time to the State to obtain instructions. When the matter was taken up again, the State sought further time. Since the Court had already indicated that the petition would be disposed of at the admission stage, it proceeded to decide the matter.
