GST
TRT-2025-
Supreme court of India
Date:-29-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 29 Aug 2025
Parties: Special Commissioner, Zone-11 & Ors. v. Hybon Technologies Pvt. Ltd.
Facts -
- Hybon Technologies’ refund claim under Section 54 of the CGST Act read with Section 16 of the IGST Act was rejected by order dated 14.02.2025.
- The company filed a writ petition before Delhi High Court, contending that the revenue authority, while examining refund, had ventured into adjudicating admissibility of ITC, which exceeded its jurisdiction.
- The respondents objected to the writ’s maintainability, arguing that an appeal was the proper remedy.
- The Delhi High Court (18.03.2025) overruled this objection, holding that the issue raised was a jurisdictional challenge that struck at the foundation of the impugned order, thus warranting writ interference. Notice was issued and the matter tagged with a connected writ.
- The revenue challenged this order before the Supreme Court by filing the present SLP.
Issue -
- Whether the Delhi High Court was justified in entertaining a writ petition against refund rejection, despite availability of an appellate remedy, when the challenge was based on jurisdictional grounds.
Order -
- The Supreme Court, after hearing counsel and perusing the record, found no good reason to interfere with the High Court’s order.
- It upheld the High Court’s view that when a jurisdictional error is alleged—such as an authority exceeding its powers in refund adjudication—the writ court can intervene despite the existence of an appellate remedy.
- By dismissing the SLP, the Court reaffirmed that writ jurisdiction remains available in refund disputes involving jurisdictional excess.
- This serves as a key takeaway that taxpayers can directly invoke writ jurisdiction where refund rejections are based on issues beyond the authority’s domain, rather than being compelled to exhaust appellate remedies.
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