Refund claims cannot be considered as dubious on the basis of erroneous findings

Last updated: 17 February 2023

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The Delhi High Court has ruled that refund claims cannot be deemed dubious simply because of incorrect findings by authorities. In a case involving Mahajan Fabrics Pvt. Ltd., the court found that the Revenue Department's appeal was based on a flawed premise regarding vehicle registration details. The court set aside the Appellate Authority's order and directed the refund to be disbursed, emphasising that there was no valid reason to doubt the particulars provided by the assessee.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in M/s. Mahajan Fabrics Pvt. Ltd. v. Commissioner, CGST and Ors. [W.P. (C) 6727/2022 dated February 6, 2023] has set aside the order passed by the Appellate Authority, disallowing the refund claimed by the assessee. Held that, the foundation of the Revenue's appeal was flawed and based on erroneous finding that the vehicles mentioned in invoices used for transport of goods were not registered on the e-vahan portal. Hence, there was no tangible reason to doubt that the particulars as stated in the invoice by the assessee were untrue. Directed the Respondent to disburse the refund amount previously sanctioned to the assessee.

Citation :
W.P. (C) 6727/2022 dated February 6, 2023

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