Absence of e-vahan portal vehicle details cannot be a reason to reject GST refund: HC

Case Details: Mahajan Fabrics (P.) Ltd. v. Commissioner, Central Goods and Services Tax - [2023] 147 taxmann.com 460 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • R.S. Yadav & Abhishek Jaju, Advs. for the Petitioner.
  • Ms Sushila Narang Sr. Panel Counsel for the Respondent.

Facts of the Case

The petitioner had filed an application for refund under Section 54 of CGST Act, 2017. The said application was allowed but the order was reviewed. The review order directed that the appeal shall be preferred to the Appellate Authority on the ground that two invoices among several invoices in respect of which refund was sought were not reflected in e-vahan portal. The Appellate Authority allowed the Revenue’s appeal on the ground that the petitioner had not established that the goods had been received. It filed writ petition against the impugned orders.

High Court Held

The Honorable High Court noted that the refund claim and details provided in invoices could not be said as ineligible and unreliable respectively based on ground that vehicle numbers mentioned in certain invoices were not reflected in portal. In the instant case, the Appellate authority had allowed department appeal on ground that evidence for proving goods were received by providing details of vehicle in remaining invoices was not submitted despite the fact that vehicle numbers for said two invoices were reflected in said portal.

The Court also noted that the provisions requiring reflection of details in e-vahan portal for claiming refund are absent. Therefore, it was held that the petitioner was eligible to claim refund of input tax credit as conditions prescribed in section 16 were satisfied and the petitioner had disclosed necessary details in its return for claiming such refund. Thus, the Court allowed writ petition and held that the impugned orders were not sustainable.