High Court disbands Refund Approval Committee (RAC) under Delhi GST Act, ensures timely refunds

The High Court ordered the disbandment of the Refund Approval Committee (RAC) and proposed the appointment of a proper officer to handle refunds above a certain value as per the Delhi GST Act. The Court addressed delays in processing refund claims, with authorities ensuring that refund amounts, including the Central component, would be credited to petitioners before the next hearing. Petitioners were allowed to file affidavits detailing interest claims under the DGST/CGST Act. Officials were excused from appearing at the next hearing scheduled for 8th July 2019.

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Issues: Review of refund procedure, disbandment of Refund Approval Committee (RAC), delay in proceedings, processing of refund claims, crediting refund amounts, interest claims under DGST/CGST Act.

Review of Refund Procedure and Disbandment of RAC:
The High Court ordered the presence of key officials following a previous order. The Commissioner (VAT) and members of the Refund Approval Committee (RAC) were present. The Commissioner proposed to disband the RAC and appoint a proper officer to handle refunds above a certain value as per the Delhi GST Act. He committed to submitting an affidavit outlining the steps taken. The Court was informed that the RAC deferred proceedings due to lack of awareness about the Court's order. An explanation was sought from the concerned officer, and further actions were to be reported later.

Delay in Proceedings and Processing of Refund Claims:
The Court was informed that refund orders had been issued for the petitioners, but the actual amounts were not credited to their accounts. Additionally, in some cases, only the State refund component was released, not the Central component. The authorities assured to address these issues, with the Central component refunds to be credited before the next hearing date. Petitioners were allowed to file affidavits explaining their interest claims under the DGST/CGST Act, to be submitted at least a week before the next hearing for the respondents to respond.

Crediting Refund Amounts and Interest Claims:
The authorities assured that the refund amounts, especially the Central component, would be credited to the petitioners before the next hearing. Petitioners were granted permission to file affidavits detailing their interest claims under the DGST/CGST Act, with a deadline set for submission. The officials present were excused from appearing on the next hearing date, scheduled for 8th July 2019.

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