The Delhi High Court has pulled up the GST Department for rejecting a refund claim despite a favorable order from the appellate authority and stated that such a rejection appears prima facie “unknown to law.”
The Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta after hearing the petitioner’s Advocate Ruchir Bhatia observed that once the appellate authority had decided in favour of the assessee, the only option before the department was to either challenge it before the competent forum or to process the refund after computation of the same.
The petitioner company, NAMMO India Pvt Ltd, approached the Court under Articles 226 and 227 of the Constitution of India, challenging an impugned order dated April 28, 2025. This order, passed by the Assistant Commissioner (Refunds), rejected the refund claim of the company—despite the fact that the appellate authority had already decided in NAMMO’s favour.
The Court further noted that the Commissioner dealing with refund applications could not, prima facie, reopen the matter on merits once a higher authority had already adjudicated it.
The Court has issued notice to the Respondents. Senior Standing Counsel Mr. Anurag Ojha, appearing for the Department, accepted the notice and sought time to take instructions.
The matter is now listed for the next hearing on July 29, 2025.
Case Details
Case Title: Nammo India Pvt Ltd Versus Commissioner of CGST
Case No.: W.P.(C) 10208/2025
Date: 18.07.2025
Counsel For Petitioner: Ruchir Bhatia and Mr. Abhishek Anand, Advocates
Counsel For Respondent: Anurag Ojha, SSC with Mr. Dipak Raj, Advocates
