HC Orders GST Refund With Interest After SFIO Ground Found Incorrect

Centax Editorial Board

June 6, 2026

• 2 min. read

Case Details: Aelite Logistics and Marketing Pvt. Ltd. vs. Chief Commissioner of CT & GST (2026) 42 Centax 88 (Ori.)

Judiciary and Counsel Details

- Harish Tandon, CJ. & Murahari Sri Raman, J.
- S/Shri Rudra Prasad Kar, Sr. Adv. & Madhab Lal Agarwal, Adv., for the Petitioner.
- S/Shri Sunil Mishra, Standing Counsel & Satya Narayan Pattanaik, Central Government Counsel, for the Respondent.

Facts of the Case

The petitioner had deposited the prescribed pre-deposit amount for filing an appeal under the GST law and subsequently sought a refund of the said amount. The refund application was rejected by the Department solely on the ground that the Serious Fraud Investigation Office (SFIO) had directed that no refund relating to the petitioner should be processed owing to a pending investigation. During the writ proceedings, the Department produced the relevant correspondence. It emerged from a communication issued by the SFIO that no investigation had been initiated, was pending, or had been completed against the petitioner. The petitioner accordingly challenged the order rejecting the refund before the Orissa High Court.

High Court Held

The High Court held that the refund application had been rejected solely on the premise that an SFIO investigation was pending against the petitioner. However, the communication placed on record by the SFIO itself confirmed that no investigation had been initiated, was pending, or had been completed against the petitioner. The Court further observed that the refund of an amount deposited as a precondition for filing an appeal stood on a different footing and could not be withheld on the grounds urged by the Department. Accordingly, the refund rejection order was set aside, and the authority was directed to release the amount along with applicable interest. The writ petition was accordingly disposed of.