Sisla Laboratories Vs Deputy Commissioner of CGST (Delhi High Court)
GST refund rejected without proper notice? Delhi HC says appeal can be filed. Also directs refund with interest as memo not traceable by Dept.
Delhi High Court has directed the Goods and Services Tax (GST) Department to process a refund application of over Rs. 10 lakh for M/s. Sisla Laboratories, along with statutory interest. The court found no valid grounds for withholding the refund, particularly noting the department’s inability to trace a crucial deficiency memo. The ruling, issued in a writ petition filed by Sisla Laboratories, also addressed a separate refund application, allowing the petitioner to file a belated appeal against its rejection due to lack of prior notification.
Background of the Case:
Sisla Laboratories had filed two refund applications under Section 54(3) of the CGST Act. The first application, dated May 17, 2019, sought a refund of Rs. 9,59,252/- for the period of July 2017 to March 2018. The second, dated June 12, 2019, was for Rs. 10,65,043/- covering June 2018 to March 2019. The petitioner’s grievance was that despite these applications being filed in 2019 and a reminder sent in 2023, the refunds remained unprocessed.
Department’s Contentions and Petitioner’s Rebuttals:
