GST
TRT-2025-
High court of Delhi
Date:-12-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order date:12 Aug 2025
Parties: Alkesh Tacker HUF v. Union of India & Ors.
Facts -
- The petitioner exported goods between September–December 2021 and sought refund of unutilized ITC of ₹10,05,341/-.
- Although all required documents were filed with the refund application, the claim was rejected on the sole ground that the Letter of Undertaking (LUT) was filed on 26.08.2021 while the refund period was July–December 2021. The petitioner argued that exports commenced only in September 2021, after filing of the LUT.
Issue -
- Whether refund of ITC on zero-rated supplies can be denied on the ground that the LUT was filed after the refund period commenced but before the first export was made?
Order -
- The division bench of the Hon’ble High court held that the rejection was baseless and the LUT was filed before the first export on 13.09.2021, and all other statutory requirements were satisfied.
- A perusal of the dates of the shipping bills would show that they are dated from 13th September 2021. All these documents are also clearly available with the Customs Department which are ignored and the refund has been rejected. The reason given for rejecting the refund is thus, completely unsustainable. The denial of refund was contrary to the scheme of Section 54 and Rule 89 of the CGST Rules.
- The Court set aside the refund rejection order and directed processing of the refund with statutory interest, and further held that if not credited by 03.09.2025, interest at 12% would be payable. The order was also directed to be circulated to the Commissioner to prevent such hardship to exporters.
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