Judgment
1 of 6 16 - WP-1791-2026.DOC IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 1791 OF 2026
Thalia And Gami Enterprises Thru. Partner Petitioner versus Joint Commissioner Cgst and C. Ex. Belapura And Ors Respondents WITH WRIT PETITION NO. 1262 OF 2025
Thalia And Gami Enterprises Petitioner versus Union Of India Thr The Secretary Ministry Of Finance and Ors Respondents WITH INTERIM APPLICATION NO. 5883 OF 2026 IN WRIT PETITION NO. 1262 OF 2025
Asst Commissioner Of CGST Petitioner versus Thalia And Gami Enterprises Respondent _______ Ms. Ritika Agarwal a/w Ms. Yaminee Verma, Advocates i/by M/s. Acelegal for Petitioner.
Mr. Ram Ochani a/w Ms. Mamta Omle, Advocates for Respondents in Writ Petition No. 1791 of 2026.
Mr. Karan Adik a/w Mr. Abhishek R. Mishra, Advocates for Respondents in Writ Petition No. 1262 of 2025.
_______ Bharati
2 of 6 16 - WP-1791-2026.DOC CORAM:
G. S. KULKARNI & AARTI SATHE, JJ.
DATE:
04th August, 2026 P.C.
1.
We have heard the present proceedings from time to time, which relate to a claim of refund as made by the Petitioner. On 30th April, 2026 after hearing all the learned counsels for all parties, we had passed the following order:
1. As noted in the earlier order, the only issue for consideration is whether there is any unjust enrichment on the part of the petitioner in regard to its entitlement to a refund of Rs.15,95,63,848/- Learned counsel for the petitioner has drawn our attention to paragraph 8 of the rejoinder affidavit dated 27 April 2026 of Shri. Murji Bhanji Gami, Partner of the petitioner, to submit that all documents, which according to the petitioner are necessary, have been submitted. However, after due consideration of the matter, the appellate authority directed verification of the GSTR returns, invoices, and the undertaking issued by CIDCO, as also any other documents required by the proper officer, as set out in paragraph 4.4 of the reply affidavit of Shri.
Shrikant Ganapati Hosabale, Assistant Commissioner of CGST & Central Excise, Division-II, Belapur Commissionerate, dated 21 April 2026.
2. Learned counsel for the petitioner submits that although majority of the documents are submitted, the invoices as also the agreements in regard to the sale of the flats will be presented before the proper officer for verification, who shall thereafter take an appropriate view of the matter before the adjourned date of hearing. Let this entire exercise be completed within a period of four weeks from today.
3. We, accordingly, adjourn the proceedings to 11 June 2026 (H.O.B.) Part Heard.
4. At this stage, we are informed that Writ Petition No.1791 of 2026 is the companion petition which is inadvertently shown as disposed of. It is contended that the said writ petition is required to be restored. However, under the present roster, petitions pertaining to the year 2026 would lie before the Hon'ble First Bench. Accordingly, the petitioner is required to move an appropriate application in such proceedings as also move an application for both these petitions to be tagged together.
2.
Thereafter proceedings were heard on 01st July, 2026 when the Court passed the following order:
Bharati
3 of 6 16 - WP-1791-2026.DOC P.C.
1. The proceedings are listed before us pursuant to the administrative orders passed by the Hon'ble the Chief Justice to place this matter before this Bench. We have heard learned counsel for the parties on the backdrop of the earlier orders passed by the Court.
2. Today we also have an interim application filed on behalf of the Revenue praying for an extension of three weeks from the date of submission of invoices by the petitioner to complete verification of the documents and to take an appropriate view in the matter.
3. Learned counsel for the petitioner has fairly stated that all details, i.e., the demand notes (and not invoices) under which payments have been made by the purchasers shall be made available to the designated officer for the period in question, so that the officer may be satisfied that no other relevant document remains to be produced.
It is further submitted that although voluminous documents have already been submitted, no adverse finding has been recorded against the petitioner so far.
4. We accordingly permit the petitioner to keep the demand notes ready for inspection, along with a list of demand notes for the various periods, so that verification may also be carried out in a random manners. Let this exercise be completed within a period of three weeks from today and an appropriate order be passed by the designated officer after verifying such details as may be necessary. All other relevant documents have already been submitted, except for the demand notes. On this limited issue, we had made observations in our previous orders, and the proceedings were adjourned only for such verification, to ascertain whether there is any unjust enrichment on the part of the petitioner in regard to ins entitlement to a refund of Rs.15,95,63,848/-. All contentions are expressly kept open.
5. Stand over to 22 July 2026.
6. On the adjourned date of hearing, the final report regarding verification of these documents shall be placed on record by way of an affidavit by the designated officer.
7. The petitioner is directed to comply with the requirements of the said department within a period of one week from today.
3.
It is on such backdrop, the proceedings are before us today. Mr. Karan Adik, learned Counsel for Respondent has placed on record the Refund order contending that all the necessary documents as requisitioned by the Designated Officer were furnished by the Petitioner and the same were verified. It is submitted that the Designated Officer on being satisfied on Bharati
4 of 6 16 - WP-1791-2026.DOC such materials, a Refund order dated 20th July 2026 has been passed, granting a refund to the Petitioner.
4.
A copy of the Refund order dated 20th July, 2026 passed by the Assistant Commissioner, Division – II, CGST and Central Excise Belapur Commissionerate is taken on record and marked “X” for identification.
5.
Learned Counsel for the Petitioner, however, submitted that the Petitioner would become entitled for refund, along with interest as per the provisions of Section 56 of the Central Goods and Service Tax Act (CGST), 2017. We do not intend to delve on such issue as payment of interest is a statutory entitlement on the refund as granted to the Petitioner.
6.
It is informed by Mr. Karan Adik, learned Counsel for the Revenue, that the Petitioner needs to complete some regular formalities of uploading some details to seek the refund as granted in the Refund order dated 20th July, 2026 and accordingly same shall be credited to the Petitioner along with the prescribed interest as per the statute. Let the formalities to receive the refund be completed by the Petitioner within ten days from the date a copy of this order is available and on completion of such formalities within a period of ten days, the refund be credited to Petitioner’s account along with interest.
7.
All contentions of the parties on the interest entitlement are expressly kept open to be considered by the Department and the benefit as per law be accordingly granted to the Petitioner.
Bharati
5 of 6 16 - WP-1791-2026.DOC 8.
In the aforesaid circumstances, further adjudication of Writ Petition No. 1262 of 2025 is not called for, it is accordingly disposed of. No Costs.
9.
In so far as the second Writ Petition No. 1791 of 2026 is concerned, the issue is regarding to the penalty proceedings initiated against the Petitioner. The prayers in the Writ Petition No. 1791 of 2026 are required to be noted which read thus:
28. It is respectfully prayed that this Hon'ble Court be pleased:
(a) To issue writ of Mandamus or direction or order in the nature of Mandamus or writ of Certiorari or any other writ under Article 226 of the Constitution of India declaring the penalty notices dated 31/01/2024, 27/02/2024, 31/12/2024 and 04/03/2025 issued u/s. 74 as invalid and thereby quashing consequent Order in Form GST DRC-07 dated 28/10/2025 passed u/s. 74.
(b) To issue writ of Mandamus or direction or order in the Mandamus or writ of Certiorari or any other writ under Article 226 of the Constitution of India declaring the Order in Form GST DRC-07 dated 28/10/2025 passed u/s. 74 is invalid.
(c) That pending the hearing and final disposal of this Petition, the effect, implementation and operation of Order in Form GST DRC-07 dated 28/10/2025 passed u/s. 74 be stayed.
(d) To grant ad-interim relief in terms of prayer (a) to (b) as stated herein above.
(e) To award cost of the petition to the Petitioner;
(f) To grant such other relief as is deemed fit under law; and equity in the circumstances and facts of the case.
10.
Considering that there is no tax liability in view of the Refund order dated 20th July, 2026 (supra), the penalty proceedings ought not to proceed any further, which needs to be dropped.
11.
The Petition is accordingly disposed of. No costs.
Bharati
6 of 6 16 - WP-1791-2026.DOC 12.
Interim Application No. 5883 of 2026 also does not survive and stands disposed of. No costs.
(AARTI SATHE, J.)
(G.S.KULKARNI, J.)
Bharati