Refund With Interest Allowed as No SFIO Probe Was Pending | HC

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  • Last Updated on 6 May, 2026

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SFIO investigation refund

Case Details: Aelite Logistics and Marketing (P.) Ltd. vs. Chief Commissioner of CT & GST - [2026] 185 taxmann.com 591 (Orissa)

Judiciary and Counsel Details

  • Harish Tandon, CJ. & Murahari Sri Raman, J.
  • Rudra Prasad Kar, Sr. Adv. & Madhab Lal Agarwal, Adv. for the Petitioner.
  • Sunil Mishra, Standing Counsel & Satya Narayan Pattanaik, Central Government Counsel for the Respondent.

Facts of the Case

The petitioner had deposited a pre-deposit amount for filing an appeal and subsequently sought a refund of the said amount. The authority rejected the refund application solely on the ground that, during the pendency of its investigation, the Serious Fraud Investigation Office (SFIO) had issued a direction to withhold disbursement, without examining the merits of the refund claim. It was further contended that the refund was liable to be kept in abeyance due to the direction. During the writ proceedings, an official communication from SFIO was placed on record, which clarified that neither any investigation had been initiated nor was any investigation pending. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that Section 54 read with Section 107 of the CGST Act and Odisha GST Act deal with the refund of pre-deposit, and the rejection of refund on the sole premise of alleged pendency of SFIO investigation was legally unsustainable. It was further held that the SFIO communication categorically established that neither any investigation was initiated nor was any investigation pending against the assessee, thereby negating the very basis for withholding disbursement. The Court observed that an administrative rejection founded on an incorrect factual assumption could not withstand judicial scrutiny. Accordingly, the impugned order was set aside and immediate release of the amount along with interest at the prescribed rate, if attracted, was directed.

List of Cases Reviewed

List of Cases Referred to

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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