[Landmark Judgement] Balaji Exim V. Commr. (CGST) (2023)

Landmark Judgment Law Insider (1)

Published on: 04 September 2023 at 21:21 IST

Court: High Court of Delhi

Citation: Balaji Exim v. Commr. (CGST) (2023)

Honourable High Court of Delhi has held that Applications for refund of Input Tax Credit for the Goods and Services Tax cannot be rejected merely because of suspicion of the Office of the Commissioner, Goods and Services Tax without any cogent material to substantiate the illegality. It is held that the Goods and Services Tax Department cannot operate on its Whims and Fancies.

22. It is apparent that the petitioner’s refund applications have been rejected merely because of suspicion without any cogent material. There is no dispute that goods have been exported; the invoices in respect of which the petitioner claims the ITC were raised by a registered dealer; and, there is no allegation that the petitioner has not paid the invoices, which include taxes. Thus, the applications for refund cannot be denied.

23. There is merit in the petitioner’s contention that it is not required to examine the affairs of its supplying dealers. The allegations of any fake credit availed by M/s. Shruti Exports cannot be a ground for rejecting the petitioner’s refund applications unless it is established that the petitioner has not received the goods or paid for them. In the present case, there is little material to support any such allegations.

Drafted By Abhijit Mishra

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