Case Law Details
Omkara Footwear Through Its Proprietor Shyam Lal Bansal Vs Commissioner of Central Goods And Services Tax And Another (Delhi High Court)
Delhi High Court Sets Aside Order Against Omkara Footwear in GST Refund Dispute
Introduction: The Delhi High Court recently issued a significant judgment in the case of Omkara Footwear, challenging an order dated 10.12.2021, rejecting appeals against the Adjudicating Authority’s decisions on refund applications. The petitioner sought a refund of ₹18,00,202 for the period January to March 2020 under the Central Goods and Services Tax Act, 2017, and the State Goods and Services Tax Act, 2017. The court found procedural irregularities and remanded the matter for fresh consideration.
Background: The petitioner, Omkara Footwear, filed three separate refund applications totaling ₹18,00,202. The Adjudicating Authority, citing concerns over input tax credit related to “non-existent/high-risk” entities, issued show cause notices. Omkara Footwear responded with the required documents, but the refund applications were rejected on the grounds that one supplier, M/s. Yamuna Overseas, was found non-existent during physical verification, and the petitioner allegedly failed to make payments within 180 days.
Court’s Observations:
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