Refund cannot be withheld under Section 54(11) of the CGST Act merely because the Revenue contemplates filing an appeal

Last updated: 04 September 2026

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The Orissa High Court ruled that tax authorities cannot refuse a refund application under Section 54(11) of the CGST Act simply because they intend to file an appeal. The court found that the refund, which arose from an appellate order, should not be withheld when no appeal was actually pending at the time of the refund refusal. The case involved a taxpayer who paid a sum under protest, which was later ordered to be refunded by an appellate authority. The refund application was rejected based on the possibility of a future appeal, but the High Court set aside this decision, remanding the matter for fresh consideration.

Court :
Orissa High Court

Brief :
The Hon’ble Orissa High Court in M/s. Rashmi Agency v. Deputy Commissioner CT & GST & Ors. [W.P.(C) No. 17470 of 2026 dated June 25, 2026] set aside the order refusing to consider the refund application filed under Section 54 of the Central Goods and Services Tax Act, 2017 ( “the CGST Act” ) and held that the refund flowing from an appellate order cannot be withheld by invoking Section 54(11) of the CGST Act read with Rule 92(2) of the Central Goods and Services Tax Rules, 2017 ( “the CGST Rules” ) merely because the Revenue contemplates filing an appeal before the GST Appellate Tribunal under Section 112 of the CGST Act, when, on the date of passing of the order, neither any appeal nor any other proceeding was pending. Accordingly, the matter was remanded for fresh consideration within a period of two weeks.

Citation :
W.P.(C) No. 17470 of 2026 dated June 25, 2026

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Attached File : 671907_6111_20_rashmi_agency_cuttack.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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