Harbhajan Singh Thukral Vs Government of NCT of Delhi Department of Trade And Taxes & Anr
Date: August 19, 2025
Subject Matter
Appropriated Amount to be refunded due to Department's Failure to Update Portal
Summary
The petitioner filed a petition seeking the refund of Rs. 9,09,727/- from its electronic cash ledger. The Jurisdictional Officer initially sanctioned the refund but then adjusted the amount toward an outstanding liability of Rs. 10,71,941/-, which was later determined to be Rs. 12,10,668/-.
The central issue arose from a departmental error. The respondents' counter affidavit admitted that a liability of Rs. 12,10,668/- against the petitioner was officially cancelled via an order in FORM GST DRC-8A dated July 24, 2023. However, this cancellation order was not uploaded onto the AIO (Assessment and Information Officer) portal. This failure resulted in the sanctioned refund being wrongfully appropriated/adjusted against an outstanding liability that no longer existed.
The petitioner argued that since the liability was cancelled, the appropriated amount must be refunded.
The High Court allowed the petition. Acknowledging the departmental error that led to the wrongful appropriation of the petitioner's funds, the court directed the respondents to process the refund application and pay the refund amount of Rs. 9,09,727/- to the petitioner along with statutory interest in accordance with law. This entire process must be completed within a period of two months from the date of the order.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
2. The present petition seeks refund of a sum of Rs.9,09,727/- along with interest.
3. The case of the Petitioner is that it is an entity engaged in trading of motor parts and mobiles. The Petitioner is claiming to have made a refund application for the excess balance lying in the electronic cash ledger. The same was accepted by the concerned Jurisdictional Officer on 12th April, 2023, however, the amount was adjusted towards the outstanding liability of the Petitioner.
4. A perusal of the records would show that though initially a sum of Rs.7,71,000/- has been issued as refund to the Petitioner, the same has been appropriated /adjusted towards the outstanding liabilities against the Petitioner, of Rs.10,71,941/- vide order dated 18th September, 2023.
5. On the last date e., 7th April, 2025, it was submitted by the ld. Counsel for Delhi GST that a demand of Rs.12,10,668/- has been cancelled against the Petitioner and the same has been sent to the Goods and Services Tax Commissionerate, Palam. Accordingly, Mr. Singla, ld. SSC was directed to seek instructions.
6. Mr. Singla, ld. SSC has filed the counter affidavit dated 17th May, 2025 on behalf of Respondent No. 2 – GST Commissionerate, Delhi South, Palam. The stand of the Respondent No. 2 in the said counter affidavit is that the said liability against the Petitioner stands cancelled vide order dated 24th July, 2023 in FORM GST DRC-8A. However, the said order was not uploaded on the AIO portal which resulted in the appropriation of the sanctioned amount. The relevant paragraph of the counter affidavit reads as under:
“9. In so far as paragraph 8 of the writ petition is concerned, save and except what are matters of record and save for what are admitted hereinabove specifically, all other allegations and/or contentions to the contrary are denied and disputed. It is reiterated that it is a fact on record that the adjudicating authority noticed that there was an outstanding liability of Rs.12,10,668/- as reflected on AIO portal vide Form GST DRC-7A dated13.03.2022 issued by the concerned jurisdictional ward officer and accordingly, appropriated dues amounting Rs. 9,09,727/- by way of the impugned orders dated 12.04.2023 and 18.09.2023.
11. In so far as paragraph 13 of the writ petition is concerned, save and except what are matters of record and save for what are admitted hereinabove specifically, all other allegations and/or contentions to the contrary are denied and disputed. It is further submitted that the order dated 24.07.2023 in FORM GST DRC-8A was not uploaded onto the AIO portal which resulted in appropriation of the sanctioned amount against the outstanding liability of Petitioner.
12. In so far as paragraph 14 of the writ petition is concerned, save and except what are matters of record and save for what are admitted hereinabove specifically, all other allegations and/or contentions to the contrary are denied and disputed. It is submitted that the letter dated 10.04.2024 issued by the GSTO Ward 106 regarding “quashing outstanding portal” was issued after the issuance of impugned orders dated 12.04.2023 and 18.09.2023, and was a fact subsequent in time.”
In view of the above, the Petitioner submits that the amount of refund being sought is liable to be paid to the Petitioner.
7. Accordingly, let the refund application be processed and the refund be paid to the Petitioner along with statutory interest in accordance with law within a period of two months from today.
8. The petition is disposed of in the above terms. Pending applications, if any, are also disposed of.