Mahajan Fabrics Pvt Ltd Vs Commissioner CGST And Ors (Delhi High Court)
The Hon’ble Delhi High Court in M/s. Mahajan Fabrics Pvt. Ltd. v. Commissioner, CGST and Ors. [W.P. (C) 6727/2022 dated February 6, 2023] has set aside the order passed by the Appellate Authority, disallowing the refund claimed by the assessee. Held that, the foundation of the Revenue’s appeal was flawed and based on erroneous finding that the vehicles mentioned in invoices used for transport of goods were not registered on the e-vahan portal. Hence, there was no tangible reason to doubt that the particulars as stated in the invoice by the assessee were untrue. Directed the Respondent to disburse the refund amount previously sanctioned to the assessee.
Facts:
M/s. Mahajan Fabrics Pvt. Ltd. (“the Petitioner”) had filed for an application of refund claim for INR 22,32,502 under Section 54 of the Central Goods and Services Act, 2017 (“the CGST Act”) read with Rule 89 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) and the same was granted vide Order-in-Original dated September 12, 2019 (“the O.I.O”). However, a review order dated March 15, 2020 (“the Review Order”) issued by the Revenue Department (“the Respondent”) stated that the vehicle numbers mentioned in two out of 126 invoices issued by M/s. Artex Overseas Pvt. Ltd. were not reflected on the e-vahan portal and the claim for refund of tax was dubious and therefore inadmissible.
Subsequently, an appeal was filed by the Respondent and the Appellate Authority found that the vehicles mentioned in those invoices were, in fact, registered on the e-vahan portal. However, the appeal was allowed vide order dated December 30, 2021 (“the Impugned Order”), on the ground that the Petitioner had not provided details of other vehicles pertaining to the remaining invoices.
Being aggrieved, this petition has been filed.
The Respondent contended that it is not sufficient for the Petitioner to confine itself to establishing the registration of only two vehicles on the e-vahan portal that were used to transport the goods under the two invoices in question. Further, once a doubt is raised, it is mandatory on the part of the Petitioner to file all the necessary details.
Issue:
Whether the Impugned Order passed by the Appellate Authority was sustainable?
Held:
The Hon’ble Delhi High Court in W.P.(C) 6727/2022 held as under:
