Section 54 of the CGST Act, 2017— Refund -– The petitioner sought directions to the respondent to release the refund of IGST. The petitioner had been marked as “risky exporters”. The petitioner has submitted all information as prescribed under Circular No.131/1/2020-GST dated 23.01.2020, vide email dated 17.01.2022 to the respondent. The petitioner advocate submitted that inspite of various letters and reverting ITC along with interest and penalty, neither the respondent no.7 has replied back to the petitioner nor the name of the petitioner was removed from the list of risky exporters. He relied upon the decision of the Telangana High Court in the case of Bhagyanagar Copper Private Limited V/s The CBIC. The court observed that the petitioner purchased goods from a firm who is placed in the list of L2 risky supplier and therefore the IGST refund of the petitioner was withheld. The petitioner has reversed the ITC along with penalty and interest but still the refund is not processed and given to the petitioner. Further, the respondents ought to have granted the provisional refund to the extent of 90% as provided under Section 54(6), which the respondents failed to do so. Even after submission of the positive verification report to the respondent no.7, the respondent no.7 has not issued the NOC for issuing the refund.

Held that:- The Hon’ble High Court directed the respondents to grant the amount of IGST refund to the petitioner, as claimed by the petitioner as provided under Section 54(6) and credit such amount to the petitioner’s account within a period of three weeks.