M/S It Preneurs Technology Private Limited vs. Joint Commissioner & Anr.
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The petitioner, M/s IT Preneurs Technology Private Limited, filed a writ petition before the Delhi High Court seeking a direction to the respondents (Joint Commissioner & Anr.) to decide their refund claim. The petitioner had completed export activities and submitted a refund application, which had been pending for over a year. The petitioner argued that Section 54 of the CGST Act mandates a decision within sixty days and that the respondents' failure to decide could lead to interest liability. The respondents' counsel stated that the request was under process and a decision would be communicated within four weeks.
Held
The Court accepted the statement made by the respondents' counsel as an undertaking to the Court. The petition was disposed of with a direction that the order regarding the petitioner's refund claim would be communicated within a period of four weeks from January 13, 2026. The Court also emphasized the sensitivity required towards Section 56 of the CGST Act, which provides for the payment of interest at 6% if the refund request is not processed within one year. The Court noted that the petition was partly allowed in these terms and directed compliance to be reported within six weeks.
Key Issues
1. Whether the respondents have failed to adhere to the statutory timelines prescribed under Section 54 of the Central Goods and Services Tax Act, 2017, for deciding a refund claim, and if so, what is the consequence? Petitioner's Arguments: The petitioner contended that the respondents have unduly delayed the decision on their refund claim, which has been pending for over a year. They highlighted that Section 54 of the CGST Act stipulates a decision period of sixty days. The petitioner further argued that the respondents' inaction makes them liable to pay interest as contemplated under Section 56 of the CGST Act, given the delay exceeding one year. Respondents' Arguments: The respondents stated that the petitioner's request is currently under process and assured the Court that a decision would be communicated within four weeks from the date of the order.
Sections Cited
Section 54, Section 56
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Cause title — parties, addresses and appearances
O R D E R %
2026 CM APPL. 1851/2026 (Exemption)
Exemption allowed, subject to all just exceptions.
The application stands disposed of. W.P.(C) 385/2026
After the return was submitted by the petitioner and upon completion of the export activity, the petitioner sought a refund, which issue is pending consideration with the respondents for more than one year.
As such, it is prayed that the respondents be directed to decide the prayer of the petitioner qua the refund claimed by him. It is also urged that Section 54 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) contemplates that the decision be taken within a period of sixty days. 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 16/01/2026 at 13:21:14
It was incumbent on the part of the respondents to decide the same, failing which interest was liable to be levied.
The learned counsel appearing for the respondents states that the request of the petitioner is already under process and the decision shall be communicated to the petitioner within a period of four weeks from today.
Since the statement is coming from the authority on instructions, same is accepted as an undertaking to this Court.
As such, we dispose of the present petition by accepting the aforesaid statement, viz., that the order qua the claim for refund canvassed by the petitioner shall be communicated within a period of four weeks from today.
We make it clear that the authority shall be equally sensitive to the provisions of Section 56 of the CGST Act which contemplates the payment of interest @6%, in case, if the request for refund is not processed within a period of one year.
The petition as such stands partly allowed in above terms.
Let the compliance be reported before this Court within a period of six weeks from today.
In view of the above, the present writ petition stands disposed of accordingly. NITIN WASUDEO SAMBRE, J AJAY DIGPAUL, J JANUARY 13, 2026/sky/sk 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 16/01/2026 at 13:21:14
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.