Refund claims cannot be considered as dubious on the basis of erroneous findings

The Hon’ble Delhi High Court in M/s. Mahajan Fabrics Pvt. Ltd. v. Commissioner, CGST and Ors. [W.P. (C) 6727/2022 dated February 6, 2023] has set aside the order passed by the Appellate Authority, disallowing the refund claimed by the assessee. Held that, the foundation of the Revenue’s appeal was flawed and based on erroneous finding that the vehicles mentioned in invoices used for transport of goods were not registered on the e-vahan portal. Hence, there was no tangible reason to doubt that the particulars as stated in the invoice by the assessee were untrue. Directed the Respondent to disburse the refund amount previously sanctioned to the assessee.

Source a2ztaxcorp