2025 (8) TMI 1451

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....allenging the impugned order dated 4th March, 2025 passed under Section 54(11) of the Central Goods and Service Tax Act, 2017 (hereinafter 'the Act'), whereby the Commissioner, CGST has withheld the processing and sanctioning of refund to the Petitioner of a sum of Rs. 83,46,169/-. 3. The Petitioner in the present case is engaged in the business of providing technical consultancy service in Management Systems, Quality Assurance and Product Certification in India as well to various foreign clients and has a GST registration bearing no. GSTIN. 07ABSPG9213C1ZQ. 4. The brief background of this Petition is that the Petitioner's application for refund for the period FY 2019-20 was initially rejected by the Adjudicating Authority vide Order-....

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....trary to the interest of the revenue. 7. Based on the said review order, Respondent No.1 issued the impugned order dated 4th March, 2025 withholding the processing of the Petitioner's refund application which was allowed by the Appellate Authority vide the OIA dated 20th June, 2022. For ready reference, the operative portion of the impugned order dated 4th March, 2025 is set out below: "ORDER In terms of the power vested in me under Section 54(11) of the CGST Act, 2017, I withhold the further processing and sanction of refund of Rs. 83,46,169/- filed by the taxpayer M/s Omega QMS, (GSTIN-07ABSPG9213C1ZQ) registered at 9th, 909, HEMKUNT HOUSE, RAJ/NORA PALACE, DELHI, East Delhi, Delhi, 110008 vide ARN - AA071120694296 da....

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....ish the G.S. Industries (Supra) on the ground that in the said case, there was no opinion under Section 54(11) of the Act. 12. Section 54(11) of the CGST Act, 2017, reads as under: "Section 54 - xxx Section 54(11) - Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine." 13. A perusal of Section 5....

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.... the findings contrary to the same were erroneous. The Appellate Authority relied upon certain documents, including electricity bills, income tax returns etc. filed by the petitioner. The Appellate Authority also found that the Adjudicating Authority had not provided any basis for observing that the product manufactured by the petitioner required very less or no brass at all. 9. Since the petitioner succeeded in its appeal, the petitioner is entitled to the refund as claimed. However, notwithstanding the same, the refund has not been disbursed. 10. Ms. Narain, learned counsel appearing for the respondent, submits that the respondent has decided to challenge the Order-in-appeal dated 03.01.2022, and the Commissioner has pas....