2023 (2) TMI 179 - HC - GST

Seeking direction of the respondent to release the refund of IGST amounting to Rs.14,80,27,927.67/-, which is allegedly withheld illegally - HELD THAT:- The petitioner purchased the goods from Sayan Greemochem Private Limited who had purchased goods from Prince Chemicals, who is placed in the list of L2 risky supplier and therefore the IGST refund of the petitioner was withheld on the ground of availing of wrong ITC by the petitioner. It is, however, found from the record that the petitioner has reversed the Input Tax Credit of Rs.11,55,726/- along with penalty and interest towards the said goods purchased.

In this case, the petitioner has filed shipping bills for all the exports and the petitioner is not prosecuted for any offence under the Act or under the existing law and has also reversed the ITC, therefore, there is no point for the respondents herein to withheld the refund.

In the case of BHAGYANAGAR COPPER PRIVATE LIMITED VERSUS THE CENTRAL BOARD OF INDIRECT TAX AND CUSTOMS AND 5 OTHERS [2021 (11) TMI 152 - TELANGANA HIGH COURT], it was held that If the suppliers of the petitioner are found to be genuine, the petitioner is entitled to claim credit of the taxes paid on such purchases effected.

The respondents-authorities are directed to grant the amount of IGST refund to the petitioner, as claimed by the petitioner as provided under Section 54(6) of the CGST Act r/w Rule 91 of the CGST Rules and credit such amount to the petitioner’s account within a period of three weeks from the date of receipt of copy of this order.

Petition allowed in part.