The Hon’ble Allahabad High Court (Lucknow Bench) in M/s Vossloh Cogifer Turnouts India Pvt. Ltd. v. State of U.P. and Another [Writ Tax No. 1014 of 2026 dated August 10, 2026] directed the Revenue to disburse the sanctioned refund of Rs. 1,10,72,753/-, which was earlier directed to be re-credited as Input Tax Credit (“ITC”) in the Electronic Credit Ledger (“ECrL”), in cash/ in the bank account of the assessee, along with applicable interest, within a period of eight weeks, and held that where the assessee has permanently discontinued its business and surrendered its GST registration, the ECrL ceases to be functional, and re-credit of a sanctioned refund as ITC in such ledger would serve no practical, commercial or legal purpose, there being no prohibition under the GST law against payment of such refund in cash.
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