Rejecting a GST refund cannot be justified by the lack of vehicle details on the e-Vahan portal
The Delhi High Court in M/S Mahajan Fabrics Pvt Ltd Vs Commissioner CGST and others [W.P.(C) 6727/2022 with Neutral Citation Number 2023/DHC/000976 decided on 06.02.2023], held the refund claim cannot be denied merely on the suspicion that the vehicles used for transportation of goods stated in the invoices are not registered on the e-vahan portal.
M/s. Mahajan Fabrics Pvt. Ltd. had filed for an application of refund under Section 54 of the Central Goods and Services Act, 2017 read with Rule 89(1) of the Central Goods and Services Tax Rules, 2017. The Refund Application was approved by Order dated 12.09.2019 and an amount of Rs.22,32,502/- was directed to be remitted comprised of Rs. 16,22,489/- for CGST and Rs.6,10,013/- for SGST.
The Commissioner of CGST reviewed the Order in accordance with Section 107(2) of the CGST Act and instructed that an appeal be filed with the Joint Commissioner.The Respondent (Commissioner of CGST ) directed to prefer an appeal vide Review Order dated 15.03.2020, because certain invoices on which the refund was claimed were dubious. The vehicles mentioned in the invoices were not found to be registered on e-vahan portal and the details were unreliable.
The Appellate Authority vide Order dated December 30, 2021 held that the vehicles were registered on the e-vahan portal, but allowed the appeal as the Petitioner had not established that the goods were received based on the details provided in the remaining invoices.Hence, aggrieved by the Impugned Order, the Petitioner has filed the present Petition.
The Delhi High Court noted that the Petitioner has submitted the Refund Application and the required supporting documentation for the transactions to be disclosed. Furthermore, in accordance with Order dated 12.09.2019, the refund was also given. Furthermore, the Respondent granted an appeal based only on the discovery that two transportation-related vehicles were not registered on the e-vahan portal.
It was also observed that the Appellate Authority did not find any shortcomings in the Refund Application filed by the Petitioner. Moreover, the vehicles used for transportation were registered on the e-vahan portal.
The Court allowed the Petition and set aside the Impugned Order and directed the Respondents to disburse the Refund claim in accordance to Order dated 12.09.2019.
The copy of the order is as under:
From,
Krishnakant Jakhotia
Mobile No :-9422507911
Email Id :- taxtalknew@gmail.com
