Punjab & Haryana HC Directs Release of GST Refund Despite Pending Revenue Appeal

J K Cement Works Vs Commissioner Central Goods And Services Tax And Another (Punjab and Haryana High Court)

The Punjab and Haryana High Court considered the petitioner’s grievance that a refund allowed on 29.09.2022 had not been credited despite nearly four years passing. The Revenue stated that it had filed an appeal under Section 112 of the CGST Act, 2017 against the refund order, with the appeal presented before the Tribunal on 27.03.2026. No hearing date had apparently been fixed.

The Court considered whether the refund could be withheld merely because the Revenue had preferred the appeal. Noting that the petitioner was a company engaged in manufacturing cement and that its refund claim had already been allowed, the Court directed the Revenue to release the refund upon the petitioner furnishing an undertaking that, if the departmental appeal was ultimately accepted and liability arose, the amount would be deposited in accordance with law.

The petition was accordingly disposed of. Upon furnishing the undertaking and a certified copy of the order, the refund was directed to be released within six weeks.

FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT

1. The petitioner is a Company registered under the provisions of the Companies Act, 2013, which is having a manufacturing unit at Jharli, Haryana, where it manufactures cement. It approached this Court with the grievance that though an order of refund has been passed in its favour on 29.09.2022, but despite expiry of nearly four years, the refund amount itself has not been credited to its account.