GST ITC Refund Withheld Without Challenging Appellate Order: Delhi HC Directs Department to Release Refund with Interest

The Delhi High Court has directed the GST department to release an Input Tax Credit (ITC) refund with interest, which was withheld without challenging the appellate order. The court emphasized that once an appellate authority rules in favor of the taxpayer regarding ITC eligibility, the department cannot arbitrarily withhold the refund without further legal challenge to that order. This decision reinforces the principle of respecting judicial and quasi-judicial pronouncements and ensures timely refunds to taxpayers. It prevents undue harassment and financial burden on businesses due to unjustified withholding of legitimate refunds, promoting ease of doing business under GST.