Order Date – 24 August 2023

Parties: Solidum and Stars Guild LLP Vs Commissioner, Central Tax, Appeals-II, Delhi, & Anr.

Facts – 

• The Petitioner, Solidum and Stars Guild LLP, had filed an application dated 21.05.2021 claiming refund relating to ITC in respect of goods exported during the period November 2020 to March 2021.
• A Show Cause Notice dated 19.07.2021, proposing to reject the petitioner’s claim alleging that M/s Siddhi Impex have been reported as Non-Existent by the respective jurisdictional CGST authorities.
• Accordingly, the Adjudicating Authority rejected the petitioner’s entire claim for refund as it was informed by the Assistant Commissioner that on physical verification, the said entity was found to be non-existent at their registered place of business.

Issue – 

• Whether the refund can be rejected when the supplier found to be non- existent at the time of physical verification?

Order – 

• The Divisional Bench of Hon’ble High Court observed that there is no allegation regarding any irregularity in respect of the supplies made by the suppliers other than M/s Siddhi Impex. There is also no dispute as to the quantum of the ITC in respect of those supplies. Neither the Adjudicating Authority nor the Appellate Authority has raised any doubt in respect of those supplies.
• Thus, there is no reason whatsoever for denial of refund in respect of ITC pertaining to supplies made by suppliers other than M/s Siddhi Impex.
• In view of the above, the present petition is allowed. The refund claim of the remaining amount is directed to process along with interest.
• The writ petition is allowed.