The Delhi High Court has recently highlighted the “harrowing experience” faced by a widow who was seeking a refund of ₹10,45,793 from her late husband's firm’s electronic cash ledger with the GST Department.
The widow, Ms. Bhavna Luthra, is the wife of late Mr. Narain Das Luthra, proprietor of M/s Hunny Enterprises. After her husband passed away on 29th November 2020, she applied for the cancellation of the GST registration of the firm. The registration was officially cancelled from 1st January 2021 by an order dated 10th August 2021.
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Even though the GST registration was cancelled, an excess balance of ₹10,45,793 remained in the firm’s electronic cash ledger. Ms. Luthra filed a refund application (ARN No.: AA071021U32694M) to claim the amount. However, the GST Department rejected the application on 10th January 2022, and debited the amount from the ledger without either refunding it to her or re-crediting it.
Challenging this, Ms. Luthra moved the Delhi High Court by filing W.P.(C) 5551/2024. On 23rd April 2024, the Court noted her rightful claim as the legal heir and issued notice to the GST Department. By 9th May 2024, the GST Department agreed before the Court to recredit the amount within two weeks.
Quoting the Court's earlier directions:
“The Proper Officer shall recredit the amount of Rs.10,45,793/- into the electronic cash ledger of the petitioner within two weeks.”
Despite these clear instructions, the refund was neither credited nor refunded. Instead, on 30th July 2024, a fresh order was issued by the GST Department refusing the refund, stating that Ms. Luthra is not a registered person under GST. This order, passed by Mr. Sanjay Kumar Bansal, Assistant Commissioner, Old Delhi Division, became the subject of a second writ petition filed by Ms. Luthra.
The Court expressed serious concern:
“It is unfortunate to see that despite the amount being in the Electronic cash ledger, the refund has not been given to the Petitioner till date.”
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The GST Department argued that essential documents proving the death of Mr. Narain Das Luthra were not submitted along with the refund application. However, Ms. Luthra's counsel pointed out that the cancellation of the GST registration itself, dated 10th August 2021, already confirmed her husband's death.
The Court also remarked:
"The present writ petition marks the second instance wherein the Petitioner has approached this Court seeking refund."
Given the situation, the Court directed that Mr. Sanjay Kumar Bansal, Assistant Commissioner, personally appear in court on the next hearing scheduled for 5th May 2025 to explain the delay and conduct.
This case showcases not just the technicalities involved in GST refunds but also the emotional and procedural hardship faced by genuine claimants like Ms. Luthra.
Appearance: Mr. Puneet Rai, Mr. Sushil Gaba, Mr. Kapil Sharma & Ms. Srishti Sharma, Advocates for Petitioner; Piyush Beriwal, Advocate for respondent
Case title: Bhavna Luthra L/H Of Sh. Narain Das Luthra, Proprietor Of M/S. Hunny Enterprises v. Assistant Commissioner, Range 8, CGST, Delhi & Anr
Case no.: W.P.(C) 4551/2025
