Order Date – 18 May 2023

Parties: M/s. Netgear Technologies India Private Limited Vs Assistant Commissioner GST, Delhi East Commissionerate

Facts – 

• The Petitioner, M/s. Netgear Technologies India Private Limited, had exported services to M/s. Netgear Asia Pte Ltd. without payment of Integrated Goods and Services Tax during the period October, 2017 to March, 2018. Since, according to the petitioner, the supplies made were Zero Rated Supply, the petitioner filed a claim for the refund of Input Tax Credit 0n 15.04.2019 along with interest.
• The Respondent rejected the claim of petitioner. But on an appeal the Appellate Authority allowed the appeal by an Order-in-Appeal dated 09.03.2021. The claim was not processed and the petitioner filed application dated 27.04.2021.
• It was informed that the Commissioner, CGST, Delhi East Commissionerate had directed the respondent to file an appeal against the Order. The said appeal has not been preferred as yet.

Issue – 

• Whether the refund can be denied on the ground that it seeks to appeal the said order?

Order – 

• The Divisional Bench of Hon’ble High Court observed that the respondent has taken no steps to secure any order with regard to the stay of the Order-in-Appeal pursuant to which the petitioner is now entitled to the claim of refund.
• Further it is unable to accept that the Revenue can ignore the Order-in-Appeal and deny the benefits of the same on the ground that it seeks to appeal the said order.
• In the present case, the petitioner has been denied the benefit of the order in its favour for over two years. Clearly, the same cannot be countenanced. The said issue is also covered by an earlier decisions of this Court in Zones Corporate Solutions Pvt. Ltd. v. Commissioner of Central Goods & Services Tax Delhi East & Anr.: 2020-VIL-302-DEL:W.P.(C) 3620/2020
• The respondent is directed to disburse the petitioner’s claim for refund with applicable interest as expeditiously as possible. It is clarified that this would not preclude the respondents from availing the remedies as available in law.