Refund should not be credited to the Electronic Credit Ledger of a taxpayer whose business is no longer operational

Last updated: 22 May 2025

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The Calcutta High Court has ruled that GST refunds should not be credited to the Electronic Credit Ledger (ECrL) of a taxpayer whose business operations have ceased and GST registration cancelled. The court found it illogical to credit a refund to an ECrL that the taxpayer cannot utilise. The Assessing Officer was instructed to reconsider the refund order, ensuring it is paid to the taxpayer's bank account after a hearing.

Court :
Calcutta High Court

Brief :
The Hon'ble Calcutta High Court in Edelweiss Rural & Corporate Services Limited & Anr. v. The Deputy Commissioner of Revenue, Taltala Charge, WBGST& Ors. [WPA 3033 of 2025 dated May 5, 2025] instructed the Assessing Officer to reconsider the Refund Sanction Order to the extent that it directed the refund to be credited to the Assessee's Electronic Credit Ledger instead of their Bank Account. The direction was given by the Court on the ground that the Assessee had already ceased its business operations and had its GST registration cancelled, and thus, would not be in a position to utilize the refund credited to its Electronic Credit Ledger.

Citation :
WPA 3033 of 2025 dated May 5, 2025

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5851_edelweiss_rural_corporate_services_limited_anr.pdf

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Judgement posted by

Bimal Jain

Service

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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