Jian International – Delhi HC

Question before Hon’ble Delhi HC was “Whether the department officers are eligible to issue Deficiency Memo on refund applications filed under Section 54 of the CGST Act”


Held that Section 54 of CGST Act read with Rule 90 and 91 of CGST Rules provide a complete code with regard to acknowledgment, scrutiny, and grant of refund. The said Rules also provide a strict time timeline for carrying out the aforesaid activities. As per the same, acknowledgment/ deficiency memo shall be issued within 15 days timeline.


To allow the department officers to issue a delayed deficiency memo would amount to enabling to process the refund application beyond the statutory timelines. This could also be construed as a rejection of the petitioner’s initial application for a refund, as the petitioner would thereafter have to file a fresh refund application after rectifying the alleged deficiencies.


Department is directed to pay to the petitioner the refund along with interest in accordance with law within two weeks.


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