Refund on account of export cannot be withheld merely on the ground that Revenue intends to file appeal

Last updated: 30 June 2023

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Quick Summary

The Delhi High Court has ruled that tax authorities cannot withhold an exporter's refund claim solely because they intend to file an appeal. This decision came after the revenue department delayed disbursing a refund to Alex Tour and Travel Pvt. Ltd., stating they planned to appeal the appellate authority's decision. The court emphasised that the delay, exceeding a year in some cases, meant the assessee was entitled to interest, and the intention to appeal was not a valid ground to withhold the refund, particularly as the GST tribunal was not yet constituted.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in Alex Tour and Travel Pvt. Ltd. v. Assistant Commissioner, CGST [W.P.(C) NO. 5722 OF 2023 dated May 8, 2023] directed the Revenue department to disburse the assessee's refund claim along with interest as payable and held that, the Revenue cannot withheld assessee's refund merely on account that it intends to file appeal before the GST tribunal that to when the Tribunal is not constituted.

Citation :
W.P.(C) NO. 5722 OF 2023 dated May 8, 2023

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