Delhi HC dismissed writ petition filed against order of rejected refund claims being appealable order

Case details: Ajanta Industries v. Commissioner of Central Goods & Services Tax - [2021] 129 taxmann.com 408 (Delhi)

Judiciary and Counsel Details

• • Manmohan and Navin Chawla, JJ.
  • Rajesh Mahana, Adv. for the Petitioner. 
  • Harpreet Singh, Sr. Standing Counsel, Arunesh Sharma, Ms. Suhani Mathur, Advs., Devesh Singh, ASC and Manas Bhatnagar, Adv. for the Respondent.

Facts of the Case

The petitioner filed refund application but acknowledgement in RFD-02 was not issued. The department passed order rejecting refund application and the petitioner filed writ petition against the same claiming that it would be entitled to refund within sixty days from the date of filing Form GST-RFD-01 in accordance with Section 54(7) of the Central Goods and Services Tax Act, 2017.

High Court Held

The Honorable High Court noted that a petitioner who files a petition invoking the extra ordinary writ jurisdiction has to come to Court with clean hand as it is a settled law. But in the present case, as per the findings of department in the order, the premises of the petitioner found locked during inspection; the partner of the petitioner not responding to the Summons; and L1 & L2 suppliers having issued fake and bogus invoices and passed on fake Input Tax Credit.

Therefore, the Court was of the view that it would not be appropriate to entertain the present writ petition. Moreover, the order challenged in this petition was an appealable order; therefore, the present writ petition was dismissed, with liberty to the petitioner to avail the appellate remedy in accordance with law.