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Refund Money to Swiggy Even if Probe is On: HC to Taxman

The Karnataka High Court on Friday ruled that the tax department cannot refuse to refund money to Swiggy even if an Investigation was ongoing as the two processes-refund and investigation-are independent and cannot be linked. Tax experts say this would also mean that if a company or a taxpayer has deposited a sum of money that cannot be used against him/her as an admission of guilt.

Bundl Technology, an operating ecommerce platform of Swiggy, had approached the court to seek a refund of Rs. 27.51 crores.

The Directorate General of Goods and Service Tax (Intelligence), the investigation arm of the indirect tax department, is investigating Swiggy for alleged input tax credit fraud.

The court also directed the revenue department to refund the money which was “collected from the assesse (Swiggy) by coercion during the investigation.” An investigation is ongoing whether the company wrongfully availed input tax credit without any actual receipt of services.

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