HC, GST Refund cannot be denied by disregarding binding HC order where no stay or appeal is pending: Case of Thales India Private Limited vs Assistant Commissioner CGST, HC Delhi Judgement Dated 27th May 2025. The writ petition seek implementation of a refund of Rs 8,99,61,147 pursuant to the HC judgment dated 7th January 2025. In that case, it was held that, in the absence of an invoice for services received from its foreign affiliate (the overseas group entity), the value of such services would be “deemed” to be nil, as per the second proviso to Rule 28 of CGST Rules. Following the above decision, the Petitioner filed a refund claim. However, the same was rejected the order stated that the refund could not be allowed because the Department did not accept the judgement of the Delhi High Court in Metal One Corporation India Pvt. Ltd [W.P.(C) 14945/2023], which had been relied on in the Petitioner’s earlier case.
— HC held that the GST Department cannot refuse to process refund on the ground that it does not accept a binding High Court decision, especially when no stay or appeal exists. The judgment in Metal One Corporation (supra) not being accepted by the Department could not be a valid ground to deny refund, especially when the judgment in the petitioner’s own case had attained finality. It further directed that, the refund be processed and credited to the Petitioner within two months.