Section 54 of the CGST Act, 2017 --- Refund —- The petitioner sought directions to the respondent to refund the tax. The petitioner is engaged in manufacturing Handpump parts, which is chargeable @ 5%. The petitioner claimed that it has accumulated ITC on account of an inverted duty structure. The court observed that the Appellate Authority allowed the petitioner’s appeal and relied upon certain documents, including electricity bills, income tax returns etc. filed by the petitioner. Since the petitioner succeeded in its appeal, the petitioner is entitled to the refund as claimed. But the refund has not been disbursed. The respondent has not filed any appeal against the order-in-appeal and there is no order of any Court or Tribunal staying the said order. The order-in-appeal cannot be ignored by the respondents solely because according to the revenue, the said order is erroneous and is required to be set aside.

Held that:- The Hon’ble Court  directed the respondents to process the petitioner’s claim for refund including interest. Further, this would not preclude the respondents from availing any remedy against the Order-in-appeal and in the event, the respondents prevail in their challenge to order-in-appeal, the respondents would also be entitled to take consequential action for recovery of any amount that has been disbursed, albeit in accordance with the law.