Section 54 of the CGST Act, 2017--- Refund —- The petitioner sought directions to the respondent No. 2 and 3 to disburse the refund for the period, May, 2019 to December, 2019, which, is payable in implementation of the order dated 20.09.2021 passed by the Appellate Authority. The petitioner filed refund application, which were not processed on the ground that physical verification conducted on the petitioner’s premises on 05.02.2021 revealed that the concern was non-existent. And second, that the registration of the petitioner was cancelled with effect from 19.02.2021. The petitioner submitted that during the relevant period, he was carrying on the business from the other premises. However, he had subsequently shifted his manufacturing activities to the current location. By an order dated 20.09.2021, the appeals filed by the petitioner were allowed. But the respondents did not process the petitioner’s claim for refunds. The court observed that it is not open for the respondents to ignore the orders passed by the Appellate Authority merely on the ground that it has decided to appeal those orders. It would be debilitating to the rule of law, if the respondents are permitted to withhold implementation of the orders passed by the authority in this manner.

Held that:- The Hon’ble Court directed the respondents to forthwith process the petitioner’s claim for refunds including interest. Further clarified that this would not preclude the respondents from availing their remedies against the orders passed by the Appellate Authority in accordance with law. In the event the respondents succeed in upsetting the appellate orders, it would be entitled to take consequential action for recovery of any amount that may have been disbursed albeit, in accordance with applicable law.