Case Title: IHS Global Private Limited v. Union of India and others
Court: High Court of Punjab and Haryana, Chandigarh
Petition No.: CWP-6505-2025
Category: Refund of Input Tax Credit (Export of Services)
Date of Judgment: 17.03.2025
Relevant Provisions: Section 54 of the CGST Act, 2017; Rule 89 of the CGST Rules, 2017
Facts (Paras 1–2):
The petitioner, IHS Global Private Limited, an exporter of IT/ITeS services to associated enterprises abroad, filed a refund claim of ₹94,71,285 for FY 2017-18 under Section 54 of the CGST Act. The claim was made on 27.06.2019 for unutilized Input Tax Credit (ITC) from zero-rated exports without payment of tax.
Despite responding to a show cause notice dated 23.08.2021, the petitioner’s refund remained undecided for years. Multiple representations were sent between January 2023 and June 2024, but no response was received. The company approached the High Court seeking directions to the authorities to conclude the refund proceedings expeditiously.
Questions for Determination:
Whether the prolonged inaction of the department on a refund claim filed under Section 54 of the CGST Act violates the petitioner’s right to timely adjudication and refund?
Observations (Paras 2–3):
The Revenue’s counsel submitted that the competent authority was already seized of the matter and that a decision would be taken within four weeks. The Court recorded this assurance, emphasizing that the department could call for any additional documentation, provided the petitioner was duly informed in advance. The Court further noted that the petitioner agreed to cooperate fully and provide all required information promptly.
Judgment (Para 3):
The Division Bench comprising Justice Arun Palli and Justice Sudeepthi Sharma disposed of the writ petition, directing the authorities to decide the refund claim within four weeks from the date of the order. The Court underscored that no opinion was being expressed on the merits of the case and that the adjudication must be done strictly in accordance with law.
Summary of Referred Cases:
| S. No. | Case Name | Citation / Court | Principle / Verdict |
|---|---|---|---|
| 1 | IHS Global Pvt. Ltd. v. UOI | Punjab & Haryana HC, CWP-6505-2025 | Department directed to decide refund within 4 weeks under Section 54 of CGST Act due to prolonged delay |
Between Fine Lines:
This judgment highlights that administrative inaction on refund claims under Section 54 CGST Act can be challenged under writ jurisdiction. Exporters of services can seek judicial intervention if refunds are unreasonably delayed, as courts are inclined to ensure expeditious disposal to uphold the right to liquidity and compliance certainty.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
