Order Date – 05 May 2025

Parties: Edelweiss Rural & Corporate Services Limited & Anr. vs. The Deputy Commissioner of Revenue, Taltala Charge, WBGST & Ors.

Facts –

• The Petitioner, Edelweiss Rural & Corporate Services Limited, filed a refund application in Form GST RFD-01 on 20th October 2023, following a favorable appellate order dated 15th October 2023.
• The petitioner’s business was closed and GST registration cancelled. A refund of ₹68.66 lakh was sanctioned on 29th November 2023. Though initially directed to be paid to the petitioner’s bank account, the detailed order mistakenly directed credit to the electronic credit ledger, which was unusable due to the closure of business.

Issue –

• Whether the refund sanctioned should be credited to the petitioners' bank account or to the electronic credit ledger, given that the business is closed and registration cancelled? 

Order –

• The Hon’ble High Court observed that the appellate authority had allowed the petitioners’ appeal arising out of the refund/rejection order dated 11th February, 2022, by order dated 15th October, 2023 and the proper officer on the basis of the petitioners’ subsequent application had allowed the refund by directing the same to be paid to the petitioners’ bank account, however in the detailed order it appears that there is a direction to credit the refund amount to credit ledger of the petitioner no.1 which appears to be self-contradictory.
• Hence the Court directed the proper officer to reconsider the aforesaid direction in the light of the observation made herein. The aforesaid order is passed on the basis that the petitioners have closed down its business operation and its registration under the said Act has already been cancelled and that there is no tax due and payable by the petitioners.