M/S M H Industries vs. The Commissioner Of Dgst & Ors.

Through the present Writ Petition, the Petitioner, inter alia, prays for issuance of an appropriate writ, directing the Respondents to process, sanction and release the refund of Rs.44,62,622/-, claimed towards accumulated Input Tax Credit (ITC) arising from inverted tax structure under Section 54(3)(ii) of the Central Goods and Services Tax Act, 2017 (“CGST Act”) read with Rule 89(5) of the CGST Rules, 2017. 2. The brief facts leading to filing of the present Petition are that the Petitioner is engaged in the business of manufacturing footwear and is duly registered under the Goods and Services Tax regime. For the period December 2025 to March 2026, the Petitioner accumulated unutilised ITC on account of an inverted tax structure and, accordingly, filed a refund application in Form GST RFD-01 on 25.05.2026, bearing ARN No. AA070526102942B, initially claiming This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2026 at 13:05:08

Pursuant thereto, the Respondents issued Form GST RFD-02 on 22.06.2026, acknowledging the refund application, and thereafter issued Form GST RFD-08 on 25.06.2026 seeking supporting documents and clarification regarding the refund computation.

In response to the same, the Petitioner duly submitted its response along with the requisite documents and, upon noticing an inadvertent computational error, submitted a revised refund computation on 24.07.2026, restricting the claim to Rs.44,62,622/-.

It is the case of the Petitioner that despite the expiry of the statutory period prescribed for disposal of the refund application, the Respondents have not passed the final refund sanction order in respect of the revised claim of Rs.44,62,622/-.

Following which, the Petitioner submitted a reminder dated 27.07.2026 requesting sanction and release of the admissible refund. However, since no refund came to be initiated the Petitioner approached this Court seeking our indulgence.

During the course of hearing, learned counsel representing the Respondents has produced the Order dated 11.08.2026 issued by the Respondents, whereby the refund of Rs.44,59,239/-, against the ITC came to be sanctioned.

Learned counsel representing the Petitioner submits that the aforesaid amount ought to be released to the Petitioner, along with applicable interest, within a stipulated period in accordance with Circular No. 125/44/2019-GST dated 18.11.2019. 9. In response to the aforesaid submissions, learned counsel representing the Respondents submits that the Petitioner can approach the concerned officer for claiming the interest payable on the refund This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2026 at 13:05:08

Since the refund is liable to be paid along with interest in terms of the aforesaid Circular, this Court deems it appropriate to direct the Respondents to release the sanctioned refund amount of Rs.44,59,239/- along with the applicable interest, as prescribed under the Circular, within one month from today.

With these observations, the present Writ Petition is disposed of. ANIL KSHETARPAL, J. HARISH VAIDYANATHAN SHANKAR, J. AUGUST 12, 2026/sp/hr This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2026 at 13:05:08