Refund Allowed with Interest as Deficiency Memo Untraceable | HC

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Refund with statutory interest

Case Details: Sisla Laboratories vs. Deputy Commissioner of CGST - 
[2025] 176 taxmann.com 432 (Delhi)

Judiciary and Counsel Details

  • Pratibha M. Singh & Rajneesh Kumar Gupta, JJ.

Facts of the Case

The petitioner-assessee had filed refund applications, but the rejection of those claims came to the petitioner’s knowledge only during the course of the present writ proceedings, through an additional affidavit filed by the Department. The petitioner contended that the rejection order had never been communicated earlier, and that a deficiency memo issued in response to the refund application was untraceable. It was submitted that the lack of communication had deprived the petitioner of the opportunity to pursue appellate remedies. The matter was accordingly placed before the Delhi High Court.

HC Held

The Delhi High Court held that the petitioner’s statutory remedies could not be shut out due to the delay in communication, particularly when such delay was attributable to the Department. The Court directed that the petitioner be permitted to file an appeal before the Appellate Authority under section 107 of the CGST Act and the Delhi GST Act. It was further held that the petitioner would be entitled to refund along with statutory interest.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied