The Delhi Court while allowing the Goods and Service Tax (GST) refund of Rs. 8.99 Crores held that so long as there is no challenge and no stay by the department, the refund could not have been held up.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the Department is refusing to follow the decision of this Court by observing that it does not accept the decision in Metal One Corporation. Even if the Department wishes to challenge the judgment in Metal One Corporation or the judgement in the Petitioners’ case, so long as there is no challenge and no stay, the refund could not have been held up.
The Petitioner, Thales India Private Limited challenged the Order passed by the Respondent-Assistant Commissioner of CGST, Delhi. The Petitioner has sought the refund of the sum of Rs. 8,99,61,147 in terms of the order passed in ‘Thales India Private Limited v. Additional Commissioner of CGST, Audit-II, Delhi & Anr.’
The Coordinate Bench has followed the earlier judgment in W.P.(C) 14945/2023 titled ‘Metal One Corporation Pvt. Ltd. v. Union of India’, which dealt with an identical controversy and had quashed the Show Cause Notice therein dated 31st May, 2024.
The Petitioners then filed the refund application, which has been rejected by the the Assistant Commissioner, Mr. Ram Gopal Sagar. It was observed that the services provided in respect of seconded employees fall under the definition of supply under Section 7 of the CGST Act, 2017 and subsequently under the definition of ‘import of service’ under Section 5(3) of the IGST Act, 20 17. The party is not eligible for refund of Rs.8 ,99,61,147.
The court while disposing of the writ petition directed the department to process the refund and the refund to be credited within two months.
Case Details
Case Title: Thales India Private Limited Versus Assistant Commissioner Of CGST, Delhi
Case No.: W.P.(C) 5563/2025
Date: 27.05.2025
Counsel For Petitioner: Sunil Dalal, Sr. Adv
Counsel For Respondent: Samiksha Godiyal, SSC, CBIC
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