$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 15^th May, 2025 + W.P.(C) 3713/2025 & CM APPL. 17335/2025 M/S K-NXT LOGISTICX PRIVATE LIMITED .....Petitioner Through: Mr. Siddharth Malhotra, Advocate versus UNION OF INDIA AND ANR .....Respondents Through: Mr. Gibran Naushad, SSC with Mr.

Suraj Shekhar Singh and Mr. Harsh Singhal, Advocates CORAM:

JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present petition has been filed on behalf of the Petitioner-M/s K- NXT Logisticx Pvt. Ltd. under Article 226 of the Constitution of India inter alia seeking a direction to the Respondent No. 2 department (hereinafter, ‘department’) to sanction the refund claim of the Petitioner amounting Rs. 19,09,038/-alongwithapplicableinterestintermsofSection56oftheCGST Act.

3. The case of the Petitioner is that it is engaged in rendering freight forwarding services to various clients in India and abroad. The Petitioner procures various input services from various dealers in respect of domestic sales and discharges GST liability at 18%. It is stated that usually, the Signature Not Verified Signed By:DEVANSHU W.P.(C)3713/2025 Page1of6 PetitionerhasanexcessbalanceandunutilizedInputTaxCredit (‘ITC’)exists in favour of the Petitioner. The present petition relates to the unutilized ITC for the period January, 2023.

4. It is further stated that the Petitioner filed a refund claim on 7^th April, 2023. Thereafter a Show Cause Notice was issued on 30^th May, 2023 (hereinafter,the ‘ShowCause Notice’) and the Petitioner filed an online reply to the same. However, during the pendency of the Show Cause Notice, the refund claim was rejected vide order dated 12th June, 2023 passed by the Office of Assistant Commissioner, Central Tax GST West, Rohini, Delhi. This order was challenged by the Petitioner before the Appellate authority. The Appellate authority allowed the refund claim on 16^th January, 2024. The operative portion of the said order reads as under:-

“ ….8. The appeal filed by M/s K-NXT Logisticx Private Limited, 4th Floor, House No.23, BLK-C, PKT-11, Sector-5, Rohini, North- West Delhi, Delhi-110085 against Order-In-Original Nos. DL/GST/West/Roh/R-108/K Next Logistics Limited/Refund/2023- 24 dated 12.06.2023 is hereby allowed and disposed of in terms of Section 107(12) of CGST Act, 2017.”

5. In the meantime, after the Appellate authority’s order, it is stated that the Petitioner repeatedly made representations. However, the refund has not been granted. Hence, the present petition.

6. The case of the department is that by exercising powers under Section 54(11) of the CGST Act, 2017, the order under appeal has been reversed in the following terms:

“ ORDER ln terms of the power vested in me under Section 54(11) of the CGST Act,2017, I withhold the further processing and sanction of refund filed by the taxpayer M/s. K-NXT Logisticx Signature Not Verified Signed By:DEVANSHU W.P.(C)3713/2025 Page2of6 Pvt. Ltd., IGSTIN- 07MKCK0356L7ZA) registered at 4th floor, House No 23, BLK-C, PKf-71, Sector 5, Rohini, North WestDelhi,Delhi-110o85 videARN-M070224O05149Xdated O2.O2.2O24 consequent to passing of Order-in-Appeal No. 24UADqcentrul Tax-II/Delhi/23-24 doted 76.07.2024 till the finality of the Appellate proceedings before GSTAT or HiSh Court or the Supreme Court against said order or further order passed by these forums and appealed against before the next Higher Appellate forum, as grant of refund at this stage will adversely affect the revenue in said appeal on account of the malfeasance committed as discussed supra.”

7. The position under Section 54(11) of the CGST Act, 2017 has been recently considered by this Court in Shalender Kumar v. Commissioner Central Goods and Services Tax Delhi West & Ors. in W.P.(C) 3824/2025 dated 3^rd April, 2025 wherein the Court observed as under:

“ …

12. Section 54(11) of the CGST Act, 2017, reads as under:

“Section 54 - xxx Section 54(11) -