Order Date – 17 September 2024

Parties: M/s Mandy Enterprises Proprietorship Concern Vs Deputy Commissioner, CGST Division And Another & Anr.

Facts – 

• The Petitioner, M/s Mandy Enterprises, was providing waste management services to various government and local authorities since the year 2014. Sh. Mandeep Singh Batra, the Proprietor of firm expired on 10.10.2021 and his widow (legal heir) filed an application dated 14.06.2023 seeking refund of the Integrated Goods and Services Tax balance lying in the electronic cash register.
• The Adjudicating Authority rejected the instant refund claim on the ground that provision of Section 49(6) of the CGST Act, 2017 were not complied with.
• The Appellate Authority set aside the rejection order and directed the Adjudicating Authority to process the refund on 21.01.2024. Thereafter, filing a fresh refund application on 05.02.2024 by Petitioner, the new SCN was issued and the refund has not been processed as yet.

Issue – 

• Whether the petitioner is eligible for refund?

Order – 

• The Hon'ble High Court observed that the Adjudicating Authority cannot withhold the refund, which has been directed to be issued by the Appellate Authority. The Order in Appeal dated 21.01.2024 is required to be implemented unless the same is otherwise stayed by a superior forum. Concededly, in the present case, the Adjudicating Authority have not preferred any appeal or any proceedings to challenge the Order in Appeal dated 21.01.2024. It is impermissible for the Adjudicating Authority to simply ignore the said order.
• The issue is squarely covered by the earlier decision of this Court in Alex Tour and Travel (P.) Ltd. v. Assistant Commissioner, CGST, Division-Janakpuri: Neutral Citation: 2023: DHC:3303-DB, Kunal International v. Union of India: 2023: DHC:7316-DB and G.S. Industries v. Commissioner Central Goods and Services Tax Delhi West & Anr.: 2023: DHC:2402-DB.
• The present petition is accordingly, allowed. The Adjudicating Authority are directed to forthwith process the claim for refund in terms of the Order in Appeal dated 21.01.2024 along with applicable interest.