GST Daily – 92 HC directed dept. to grant refund with interest since no reason was found for denial of refund

The Hon’ble DELHI High Court in the case of SOLIDUM AND STARS GUILD LLP V/s COMMISSIONER OF CENTRAL TAX (APPEALS-II) decided on 24-8-2023

👉 Issue

✔️ Where there were no allegations against assessee regarding any irregularities in relation to supplies, neither there was any dispute regarding quantum of ITC refund claimed. Can Assessee’s refund claim be denied ?

👉 Hon’ble High Court Judgement

✔️ As there was no allegations regarding any irregularities and no dispute regarding quantum of ITC, therefore, no reason was found for denial of refund except for Non-existent Supplies. Revenue was directed to pay a refund, in respect of Input Tax Credit with interests.

Refer: Section 54 read with section 107 of CGST Act, 2017