Punjab & Haryana High Court Directs Release Of JK Cement GST Refund Despite Revenue Appeal

The Punjab and Haryana High Court has directed the Revenue to release a GST refund to JK Cement Works, holding that the company cannot be denied the refund merely because the Revenue has challenged the refund order before the Appellate Tribunal.

The Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor passed the order on a petition filed by the cement manufacturer, which has a manufacturing unit at Jharli, Haryana.

The company had secured an order allowing its refund claim on 29 September 2022. However, despite nearly four years having passed, the refund amount had not been credited to its account.

The Revenue told the Court that it had challenged the refund order by filing an appeal under Section 112 of the CGST Act, 2017 before the GST Appellate Tribunal.

The Court noted that although the refund order was passed in 2022, the Revenue filed its appeal before the Tribunal only on 27 March 2026, and no date of hearing had yet been fixed.

The bench observed that the petitioner was an established cement manufacturing company and “cannot be treated as a fly-by-night operator.” In these circumstances, the Court found it appropriate to direct the Revenue to release the refund.

"Admittedly, the petitioner is a company and is engaged in manufacturing of cement. The petitioner cannot be treated as a fly-by-night operator", the Court observed.

The Court, however, made the release subject to the company furnishing an undertaking that if the Revenue ultimately succeeds in its appeal and any liability is found payable by the company, it would deposit the amount in accordance with law.

"In such circumstances, it would be appropriate to direct the Revenue to release the amount of refund to the petitioner, on petitioner's furnishing an undertaking that in case the department's appeal is ultimately accepted and some liability is worked out against the petitioner, the same would be duly deposited in accordance with law", the Court said.

The High Court directed the Revenue to release the refund within six weeks from the date of furnishing the undertaking and a certified copy of the order.

For Petitioner: Advocate Mukul Singla

For Respondent: Sourabh Goel, Senior Standing Counsel