Truth Fashion Through Proprietorship Ms Sadia Vs Commissioner of DGST Delhi & Ors. (Delhi High Court)
Truth Fashion, a proprietorship owned by Ms. Sadia, filed a writ petition in the Delhi High Court seeking enforcement of an earlier order directing the release of a GST refund of ₹18.33 lakh. The petitioner had previously approached the court, which, on November 18, 2024, ordered the refund to be processed within three weeks. Despite this direction, the refund remained unpaid, prompting the petitioner to seek judicial intervention again. The claim for refund originated from a May 10, 2024, decision by the Objection Hearing Authority, which had set aside an earlier rejection order.
The DGST argued that the refund was withheld under Section 54(11) of the CGST Act, citing the Commissioner’s decision to appeal against the May 10 order. However, the court rejected this argument, clarifying that merely deciding to file an appeal does not automatically stay the refund process unless a competent authority explicitly orders it. Referring to a prior ruling in Alex Tour and Travel (P) Ltd. (W.P.(C) 5722/2023, the court reiterated that pending appeals cannot justify non-compliance with appellate orders. Consequently, the court directed DGST to release the refund immediately, along with statutory interest, while allowing the department to pursue legal remedies if necessary.
