Delhi High Court - Orders
Ms Vv Footwears vs Commissioner Of Cgst Delhi West & Anr on 15 September, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~76
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 13180/2025
MS VV FOOTWEARS .....Petitioner
Through: Mr. Abhas Mishra, Adv.
versus
COMMISSIONER OF CGST DELHI WEST & ANR. .....Respondents
Through: Mr Akash verma, SSC, CBIC with Ms
Aanchal Uppal, Adv. (M: 9697980007)
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE SHAIL JAIN
ORDER
% 15.09.2025
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner - M/s V V Footwears under Article 226 of the Constitution of India, inter alia, seeking refund of a sum of Rs.14,72,080/- for the period April-Nov 2022, along with applicable interest.
3. The brief background of the case is that the Petitioner has been registered with the GST Department since 1st October, 2019. For the period from April, 2022 to November, 2022, a refund claim was filed by the Petitioner seeking refund for a sum of Rs. 27,30,909/-. The said claim was revised by the Appellant while submitting a reply to the Show Cause Notice dated 18th March, 2023 by the Assistant Commissioner, CGST, Mangolpuri division, to Rs. 20,48,637/-. The refund claim filed by the Petitioner was acknowledged on 13th February, 2023. However, a Show Cause Notice was issued to the Petitioner on W.P.(C) 13180/2025 Page 1 of 8 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 19/09/2025 at 23:05:45 18th March, 2023 by the Assistant Commissioner, CGST, Mangolpuri division (hereinafter 'SCN-1') . The SCN-1 culminated into the Order-in-Original dated 5th April, 2023 passed by the Deputy Commissioner of Central Tax, Mangolpuri Division (hereinafter 'OIO-1'). As per the OIO-1, out of the total amount of refund claimed by the Petitioner, some part was allowed in the following terms:
"ORDER FORM-GST-RFD-06 [See Rule - 92(3)] Upon examination of your application, the amount of refund sanctioned, after adjustment of dues (where applicable) is as follows:
Sr. No. Description Integrated Central Tax State/UT Tax Cess Tax 1. Amount of refund 0 3,45,144 23,85,765 0 claimed 2. Refund Sanctioned 0 0 0 0 on provisional basis (if applicable) 3. Refund amount 0 273507 1890581 0 inadmissible 4. Gross amount to be 0 71,637 4,95,184 0 paid (1-2-3) 5. Amount adjusted 0 0 0 0 against outstanding demand/ ineligible credit & Interest thereon 6. Net amount to be 0 71,637 4,95,184 0 paid I, hereby sanction following amounts to M/S V V Footwears, B-21, 1ST AND 2ND FLOOR, DSIDC UDYOG NAGAR, ROHTAK ROAD, West Delhi, Delhi, 110041 having GSTIN No. 07AGYPG7054L4ZL under sub-section (5) of section 54 of the Act, read with rule 92 (3) of CGST Rules, 2017. A. Rs. 0/- towards IGST (T).W.P.(C) 13180/2025 Page 2 of 8
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 19/09/2025 at 23:05:45 B. Rs. 71,637 /- towards CGST (T). C. Rs. 4,95,184/- towards SGST (T). Sanctioned amount is to be paid to the bank account specified by him in his application."
4. OIO-1 was challenged by the Petitioner by way of an appeal before the Appellate Authority, in which, vide order dated 29th September, 2023 passed by the Additional Commissioner, CGST Appeals-II (hereinafter 'impugned Order-in-Appeal), refund was allowed in the following terms:
"6.2 However, l find that the appellant has not given any submission regarding exclusion of remaining ITC of Rs. 102847 /- (Rs. 1663291/- minus Rs. 1560444/-) and in absence of which, I hold that the said amount of ITC has rightly been excluded by the adjudicating authority. Therefore, the revised formula, as prescribed vide Notification No. 14/2022-Central Tax dated 05.07.2022, has to be used to calculate maximum refund available to the appellant, which is as under:
[(Turnover of inverted rated supply of goods and services) x Net ITC + Adjusted total Turnover] - [tax payable on such inverted rated supply of goods and services x [Net ITC ÷ ITC availed on inputs and input services)] Particulars Amount
(a) Turnover of inverted rated 157095864 supply of services (as per para 8(i) of impugned order)
(b) Adjusted total turnover 168644664
(c) Tax payable on such 18851449 inverted rated supply on goods and services (as per para 8(i) of impugned order)
(d) Net ITC (ITC Related to 21423973 Inputs only) (Rs. 21526820/- minus Rs.102847/-
) W.P.(C) 13180/2025 Page 3 of 8 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 19/09/2025 at 23:05:45
(e) Total ITC availed on input 22540123 & input services Maximum Refund Amount 2038901 {(a)x(d)÷(b)} - {(a)x(d)÷(e)} Less: Refund already 566821 sanctioned Remaining Refund Amount 1472080 payable to the appellant
7. Therefore, from the above, I hold that the adjudicating authority has erred in denying refund of Rs. 1472080/ - to the appellant. Therefore, the impugned order, upto that extent, passed by the adjudicating authority is neither legal nor maintainable in law. As such, the same is liable to be set aside. Accordingly, 1 pass the following order:
ORDER
8. The appeal filed by M/s V V Footwears (Legal Name:
Hetram Goyal), 1st and 2nd Floor, B-21, DSIIDC Udyog Nagar, Rohtak Road, West Delhi, Delhi 110041 against Order-In-Original No. ZE0704230049329 dated 05.04.2023 is hereby allowed upto the extent of refund amounting to Rs. 1472080/-. The impugned order dated 05.04.2023 is set aside upto that extent. The appeal is disposed of in terms of Section 107(12) of CGST Act, 2017."
5. Thus, the Appellate Authority had allowed the refund to the extent of Rs.
14,72,080/-. Curiously, however, the GST Department thereafter issued a fresh Show Cause Notice on 6th May, 2024, issued by the Deputy/Assistant Commissioner, Mangolpuri Division (hereinafter SCN-2). A perusal of the SCN-2 would show that the same is in respect of the same period as in SCN-1. A hearing has been fixed for SCN-2 as well. The ground on which SCN-2 was issued is that there was a verification done again, and the reviewing Authority W.P.(C) 13180/2025 Page 4 of 8 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 19/09/2025 at 23:05:45 vide an order which is stated to be passed on 3rd April, 2024 was of the opinion that the refund in SCN-1 allowed by the Appellate Authority did not have any merit.
6. Thus, a second round of proceedings was initiated by the GST Department, and the second Order-in-Original has now been passed on 10th June, 2024, by the Assistant Commissioner, CGST, (hereinafter 'OIO-2'), rejecting the entire refund. The Reviewing Authority's reasoning as contained in SCN-2 dated 6th May 2024, is as under:
"
S. No. Description (Reasons of inadmissibility of Amount refund from the drop down) inadmissible (Rs in INR)
1. You have filed refund claim of Rs. 14,72,080/- Rs. 14,72,080/-
(IGST Rs. 0/-, CGST-Rs. 1,86,048/- & SGST- (IGST Rs.0/-,
Rs. 12,86,032/ in pursuance of OIA No. CGST
167/2023-24 dated 29.09.2023 in the category Rs.1,86,048/- &
of "ASSESSMENT/PROVISIONAL SGST-Rs.
ASSESSMENT/ APPEAL/ ANY OTHER 12,86,032/-)
ORDER" under Section 54 of the CGST
Act,2017 read with Rule 89 of CGST Rules, 2017. It is pertinent to mention that you have preferred appeal against Refund Order dated 05.04.2023 vide which your refund claim bearing ARN No AA070123135392N dated 30.01.2023 was partially sanctioned and the remaining amount of Rs. 21,64,088/- was rejected by this office. And thereafter you preferred appeal for aforesaid amount of Rs. 14,72,080/-, out of rejected amount of Rs. 21,64,088/- which has been allowed by the appellate authority.
On verification of your refund claim and documents uploaded along with refund application, it has been found that aforesaid OIA No. 167 /2023-24 dated 29.09.2023 has been reviewed vide review order No. 01/2024- 25 dated 03.04.2024 by the competent authority in terms of challenging the order of appellate authority on the following grounds-
W.P.(C) 13180/2025 Page 5 of 8This 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 19/09/2025 at 23:05:45
(i) Non-submission of any "correct Annexure-B" to the adjudicating authority, as stated by the Appellate Authority in the OIA No. 167/2023- 24 dated 29.09.2023.
Furthermore, the order issued by the appellate Authority does not address whether they have verified the aforementioned "correct Annexure-B" or the relevant invoices and accordingly, as per your initial submission during filing the refund claim and subsequent response via RFD 09, via RFD 09, it is established that the you are not entitled to a refund pertaining to ITC associated with HSN Code 64011010.
(ii) Further, the appellate Authority in OIA No. 167/2023-24 has relied upon Hon'ble Supreme Court and High Court decision wherein it has been held that substantial benefit cannot be denied due to procedural or inadvertent errors. However, in this case it is not a procedural or inadvertent error, but non-providing of mandatory information which is critical to determining the inversion involved and the quantum of the refund legible on account of same to the applicant. Therefore, the reliance placed on citations is untenable and not having contextual coherence.
In view of the above, this office finds no merit in sanctioning of the aforesaid refund claim.
"
7. OIO-2 has thereafter rejected the refund completely in the following terms:
"Reasons for granting or rejecting refund, if any: SCN was issued on 06.05.2024 with request to file reply on or before 16.05.2024 but the applicant has not filed their reply to the W.P.(C) 13180/2025 Page 6 of 8 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 19/09/2025 at 23:05:45 Show Cause Notice within time limit given to the applicant nor reply on GST Portal."
8. This OIO-2, is challenged by the Petitioner in the present petition.
9. The submission on behalf of the Petitioner is that, in effect, the Order- in-Appeal which had allowed the refund of the Petitioner, has been set at naught by the Reviewing Authority, without any appeal having been filed by the Department against the Order-in-Appeal. Hence, OIO-2 is not tenable.
10. The question that arises in the present matter is:
(a) whether the GST Department itself would not be bound by the impugned Order-in-Appeal dated 29th September, 2023.
(b) whether there are any valid grounds for review and, if so, under what circumstances can orders of the Appellate Authority be reviewed to issue a fresh Show Cause Notice.
11. The manner in which the GST Department appears to be exercising powers of review or revision, appears to this Court to be a power which would, in effect, annul the Orders-in-Original and Orders-in-Appeal passed by the respective authorities. Prima facie, there has to be a finality to proceedings, and if such reviews and revisions are permitted without resorting to appeals, the discipline of adjudication would be completely disturbed.
12. Let the GST Department file a short affidavit in this regard, as to under what circumstances powers to review and revision are exercised, and the Court would then consider the legality and validity of such exercise of power as also the boundaries in which the same ought to be exercised, as the intention ought to be to bring in certainty and predictability to adjudication processes.
W.P.(C) 13180/2025 Page 7 of 8This 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 19/09/2025 at 23:05:45
13. Let a short affidavit be filed within four weeks. Rejoinder thereto be filed within two weeks.
14. List on 26th November, 2025.
PRATHIBA M. SINGH, J.
SHAIL JAIN, J.
SEPTEMBER 15, 2025/kp/sm W.P.(C) 13180/2025 Page 8 of 8 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 19/09/2025 at 23:05:45