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“GST Refund Victory: Delhi High Court Rebukes Tax Authorities for Delayed Refund Processing!” 

Introduction:

In a significant legal triumph, the Delhi High Court, presided over by Justices Vibhu Bakhru and Amit Mahajan, has ruled in favor of Advance Systems, shedding light on the challenges faced by businesses seeking timely GST (Goods and Services Tax) refunds. This case underscores the importance of streamlining refund processes for businesses.

What Happened:

Advance Systems, the petitioner, found itself entangled in a protracted battle for GST refunds related to Input Tax Credit (ITC) linked to exports made under a Letter of Undertaking (LUT). The dispute spanned from January 2021 to September 2021, making it a lengthy and frustrating ordeal.

Why it Happened:

The crux of the issue revolved around the delay and bureaucratic hurdles in the refund process. Despite filing refund applications on April 20, 2022, the petitioner’s claims remained unprocessed. A Show Cause Notice, issued on May 19, 2022, further compounded the problem. While the petitioner appealed this notice, the tax authorities issued Orders-in-Original dated June 17, 2022, denying the refund claims.

Analysis & Impact:

The Delhi High Court, in its astute analysis, reprimanded the tax authorities for the unnecessary delays and arbitrary actions that hindered the refund process. The court noted that the appellate authority had partially allowed the petitioner’s refund claims, highlighting the flaws in the tax authority’s initial decision.

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