Harrowing experience of a genuine person in obtaining GST refund baffles High Court

High Court summons GST officials on harrowing experience of a genuine person went through in obtaining GST refund 

In a recent judgment, the Hon’ble Delhi High Court has described the non payment of GST refund as harrowing experience that a genuine person has gone through in obtaining a refund from the GST Department

ABCAUS Case Law Citation:
4524 (2025) (04) abcaus.in HC

In the instant case, the Petitioner was the wife of late assessee who was the proprietor of a firm which was registered with the GST Department and was allotted GST registration number.

Upon the demise of the husband, an application was made by the Petitioner for cancellation of the GST registration and the same was cancelled. However, the electronic cash ledger of the firm had an excess balance of which the Petitioner widow claimed refund vide a refund application. The said application was rejected by the GST Department.

The order denying the refund was challenged by the Petitioner through a writ petition before the Co-ordinate Bench of the High Court. Counsel for the GST Department under instructions submitted that the GST Department shall recredit the amount into the Electronic Cash Ledger of the petitioner within two weeks. In view of the above, the Bench disposed of the petition directing the Proper Officer to recredit the said amount into the electronic cash ledger of the petitioner within two weeks.

Despite the said order and directions of the Co-ordinate Bench, the refund was not granted but another order was passed by the Assistant Commissioner of GST Department holding that the refund would not be liable to be paid, as the Petitioner was not a person registered with the GST Department.

Aggrieved, the Petitioner again approached the Hon’ble High Court challenging the said order.

The Hon’ble High Court observed that it transpired from the impugned order that the GST Department had asked the Petitioner to explain as to why she was an unregistered person. Since the Petitioner did not appear for personal hearing the refund has been rejected.

The Hon’ble High Court expressed concern that the it was the second instance wherein the Petitioner had approached this Court seeking refund. The Hon’ble High Court described it a harrowing experience that a genuine person has gone through in obtaining a refund from the GST Department. It was noted that almost a year ago, the same Petitioner had appeared before a Coordinate Bench of this Court, which, after considering the matter, directed that the refund amount be re-credited within a period of two weeks. It is unfortunate to see that despite the said amount being in the Electronic cash ledger, the refund has not been given to the Petitioner till date.

Upon being queried as to the reason for not processing the refund, the Counsel for GST Department submitted that the essential supporting documents supporting the factum of death of the Petitioner’s husband were not placed along with the application for the refund.

On the contray the Petitioner submitted that the death of the Petitioner’s husband already stood proved vide the order of cancellation of GST registration. It was further submitted that the electronic cash ledger is in effect a deemed instrument belonging to the Petitioner itself and any amount shown therein belongs to her and the GST Department cannot hold back the said amount.

The Hon’ble High Court ordered the next date of listing and also that on the next listing the concerned GST officer to remain physically present in the Court.

Download Full Judgment Click Here >>

• Income Tax Rules 2026 notified by CBDT
• Absence of irrevocability clause no ground for rejecting registration u/s 12AB
• ITAT allows exemption of Rs. 25 lakhs u/s 10(10A) to non-government employees
• PCIT has revisionary jurisdiction u/s 263 over the cases passed by the NFAC or the JAO
• Appellate court interfering with MACT finding must undertake reappreciation of evidence