The Delhi High Court has granted the Directorate General of Analytics and Risk Management (DGARM) a final opportunity to decide an exporter’s pending Integrated Goods and Services Tax (IGST) refund claim within one week.
The Bench of Justice Anil Kshetrapal and Justice Shail Jain warned that if the decision is not taken within the stipulated period, the salary of the Director General of DGARM shall not be released until a final decision is made.
The petitioner approached the High Court seeking a writ of mandamus directing the authorities to immediately transmit its withheld IGST refund. It claimed to be an exporter that had exported goods on payment of IGST through nine shipping bills during the period from February 1, 2022, to March 19, 2023.
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N. K. Sharma, the counsel on behalf of the petitioner contended that the refund remained withheld because alerts had been inserted against its Import Export Code (IEC). These alerts prevented the refund from being processed even though a considerable period had elapsed since the exports were made.
Counsel appearing for the petitioner submitted that the authorities had subsequently certified through orders dated May 8, 2026, and May 12, 2026, that no investigation was pending against the firm. It was therefore contended that there was no justification for continuing to withhold the exporter’s refund.
The respondents, however, informed the Court that two separate alerts had been generated against the petitioner. One of these was an alert raised by DGARM on January 12, 2023, which, according to the department, was still pending.
Despite referring to the pending DGARM alert, counsel for the respondents assured the Court that the issue would be resolved positively within one week.
Taking serious note of the prolonged pendency, the High Court recorded that the petitioner’s IGST refund had remained unresolved for more than three-and-a-half years. The Bench accordingly granted the competent authority a “last opportunity” to take a final decision.
“In the event the decision is not taken within the aforesaid period, the salary of the Director General of Analytics and Risk Management shall not be released until a final decision is taken in the matter,” the Court directed.
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