Refund Sanction Order By Appellate Authority Cannot Be Ignored By Dept., Unless Competent Authority or Court Stays the Order | HC
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- Last Updated on 16 November, 2023
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Case Details: Kunal International v. Union of India - [2023] 156 taxmann.com 295 (Delhi)
Judiciary and Counsel Details
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- Vibhu Bakhru & Amit Mahajan, JJ.
- Gunjan Riccharia, Adv. for the Petitioner.
- Anurag Ojha, Deepak Somani & Jatin Singh, Advs. for the Respondent.
Facts of the Case
The petitioner had filed application for a refund of input tax credit (ITC) in respect of the goods exported without payment of tax. The petitioner’s application for refund was substantially rejected, wherein the Adjudicating Authority contended that the petitioner had wrongfully availed the ITC.
In response, the petitioner filed an appeal against the said refund rejection order before the Appellate Authority. The Appellate Authority, after reviewing the case, directed that the refund should be granted and further set aside the order rejecting the petitioner’s refund claim.
Despite this favourable outcome at the Appellate Authority level, the respondents failed to disburse the refund to the petitioner. The respondents submitted a counter-affidavit and were directed to file an appeal with the Appellate Tribunal. However, the respondents were unable to file an appeal as the Tribunal has not yet been constituted.
High Court Held
The Delhi High Court observed that the core issue in this matter revolves around the respondents’ reluctance to comply with the Appellate Authority’s order. The High Court emphasized that the respondents cannot disregard the order, unless a competent authority or court put the stay on the said order. This is notwithstanding that the respondents may have a right to appeal before the Appellate Tribunal.
In light of the above, the High Court directed the respondents to release the refund as sanctioned by the Appellate Authority.
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