Section 54 of the CGST Act, 2017 — Refund —— The petitioner sought to quash the order dated 02.08.2022, whereby the respondent has rejected the refund application of the petitioner filed on 02.06.2022 in respect of accumulated unutilised ITC of the input goods for the period December 2021 to January 2022. The counsel for the petitioner contended that for the period from 01.11.2021 to 30.11.2021, the refund was partially disallowed, which was challenged before the appellate authority, who, vide order dated 01.06.2022, held that the petitioner is entitled for maximum amount of refund as per the formula given in Rule-89(5). The court observed that the refund application was rejected on the ground that the petitioner failed to submit the complete books of accounts but it had submitted the documents manually in hardcopy. The dispute is with regard to refund of Rs.5,18,230/-, which requires proper adjudication by the authority on production of documents. Therefore, excluding Rs.5,18,230/-, out of Rs.2,22,97,228/-, the balance amount has to be refunded to the petitioner.

Held that:- The Hon’ble High Court directed the opposite parties to refund the balance amount, excluding Rs.5,18,230/- from out of total amount of Rs.2,22,97,228/-, to the petitioner pending final adjudication of the disputed amount in accordance with law.