Relief for Rayban: Rajasthan High Court Quashes CENVAT Refund Rejection

The Rajasthan High Court has granted relief to Rayban by quashing the rejection of its CENVAT refund claim amounting to ₹16.89 lakh and directed the revenue department to release the refund along with 12% interest. The Court found that the department’s rejection was unjustified and not in accordance with the law, highlighting procedural lapses and improper application of norms related to input tax credit (ITC). The refund claim pertained to inputs/input services used in the manufacture of goods and services eligible under the GST framework, and the Court emphasized companies’ legitimate right to such refunds after satisfying statutory conditions. The ruling serves as an important precedent safeguarding taxpayer interests against arbitrary denials of refunds by tax authorities without adequate legal basis. It also emphasizes the need for prompt resolution of refund claims to ensure smooth business operations and prevent unnecessary financial hardship on firms engaging in lawful commercial activity.