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Since, in the interim, investigation by DGGI Ahmedabad has been stayed and in effect no investigation is taking place, this Court, to balance the equities, directs that till further orders, no refunds shall be released to the petitioners.

Section 54 of the CGST Act, 2017 — Refund – The respondent alleged that the petitioner firm is involved in availment and utilization of fake ITC of more than Rs. 100 crores, supply of low-grade tobacco products in the garb of “smoking mixture for pipes and cigarettes”, and overvaluation of its products to pass on huge fake ITC to certain entities and it is not possible for the jurisdictional CGST Commissionerate to carry out a thorough investigation due to its limited territorial jurisdiction. The counsel for the petitioners submitted that she would like to argue on facts at some length, list the matter on 22nd November, 2021 for arguments on behalf of the petitioners. The court observed that since in the interim, investigation by DGGI Ahmedabad has been stayed and in effect no investigation is taking place. Held that:- The Hon’ble High Court held that to balance the equities, it directed that till further orders, no refunds shall be released to the petitioners.
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