2025 (5) TMI 1983

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....inter alia, seeking a direction to the Respondent No. 2 Department (hereinafter, 'Department') to sanction the refund claim of the Petitioner amounting Rs. 5,00,98,287/- along with applicable interest in terms of Section 56 of the Central Goods and Service Tax Act, 2017 (hereinafter, 'CGST Act'). 3. The case of the Petitioner is that it is engaged in the business of export of mobile phones. For the said purpose, the Petitioner is registered with the GST Department vide registration no. 07AAFCJ6874R1ZL. The Petitioner procures input services from various dealers in respect of domestic sales and discharges GST liability at 18%. It is stated that usually, the Petitioner has an excess balance and unutilized Input Tax Credit (hereinafter 'ITC....

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....e meantime, after the Appellate authority's order, it is stated that the Petitioner repeatedly made representations. However, the refund has not been granted. Hence, the present petition. 6. The case of the Department is that by exercising powers under Section 54 (11) of the CGST Act, 2017, the order under appeal has been reversed in the following terms: "ORDER I withhold the further processing and sanction of refund filed by the taxpayer M/s. JVG Technology Private Limited, 2nd Floor, 22 Vaishali Enclave, Near Kohat Metro Station, New Delhi-110034 vide ARN No. AA07122308125C dated 29.12.2023 filed consequent to passing of Orders-in-Appeal No. 195-196/ADC/ Central Tax/ Appeal-11/Delhi/2023-24 dated 11.12.2023 till final decis....

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....reafter the Commissioner gives an opinion that the grant of refund is likely to adversely affect the revenue. 14. In the opinion of this Court the Department's opinion under Section 54 (11) cannot be relied upon on a standalone basis. In the absence of an appeal or any other proceeding pending, challenging the order of the Appellate Authority, the opinion under Section 54 (11) cannot result in holding back the refund. The refund having been permitted by the Appellate Authority and no order in review having been passed, the Department cannot hold back the refund. In G.S. Industries (supra) the Coordinate Bench has observed as under: "xxx xxx xxx 7. The petitioner responded to the said Show Cause Notices. Petitioner....

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....and the refund amount be withheld solely on the ground that the respondent has decided to file an appeal against the said order. 12. Concededly, the respondent has not filed any appeal against the order-in-appeal dated 03.01.2022, and there is no order of any Court or Tribunal staying the said order. Indisputably, the order-in-appeal dated 03.01.2022 cannot be ignored by the respondents solely because according to the revenue, the said order is erroneous and is required to be set aside. 13. Learned counsel for the parties also pointed out that the said issue is covered by the earlier decision of this Court in Mr. Brij Mohan Mangla Vs. Union of India & Ors.: W.P.(C) 14234/2022 dated 23.02.2023. 14. In view of the a....