The Delhi VAT Appellate Authority has approved a significant input tax refund claim for a registered dealer, marking a major win for taxpayers engaged in long-standing disputes from the pre-GST regime. The case involved a substantial amount of accumulated input tax credit that had remained pending for several years due to objections raised during departmental audits. After a detailed examination of invoices, purchase records, and tax filings, the authority concluded that the taxpayer had sufficiently substantiated their claim and was entitled to the refund under the provisions of the Delhi Value Added Tax Act.

The ruling is particularly noteworthy as it underscores the principle that genuine claims should not be denied merely on technical or procedural grounds when the substantive entitlement is clear. The authority observed that the denial of refunds in such cases amounts to unjust enrichment of the exchequer and contradicts the intent of input credit mechanisms, which aim to eliminate cascading taxes. The decision also acknowledged the taxpayer’s proactive cooperation in furnishing all requested documentation and undergoing the audit process, further strengthening the legitimacy of the claim.

Tax professionals have welcomed the ruling, noting that it sets a positive precedent for other pending refund cases under legacy VAT laws. It highlights the importance of fair adjudication and procedural clarity in resolving disputes that have spanned years due to administrative bottlenecks or conflicting interpretations. With several such claims still awaiting resolution across different states, the Delhi case reinforces the need for timely and consistent decisions that honor the rights of taxpayers while maintaining the integrity of the indirect tax system.