2019 (7) TMI 1328 - HC - GST

Delay in grant of refund - compensation and interest for delay in grant of refund - HELD THAT - The issue is identical as decided in the case of M/S SARAF NATURAL STONE VERSUS UNION OF INDIA 2019 (7) TMI 1282 - GUJARAT HIGH COURT where it was held that the provisions relating to an interest of delayed payment of refund have been consistently held as beneficial and non-discriminatory and it was held that respondents are liable to pay simple interest on the delayed payment at the rate of 9% per annum. This writ application is allowed to the extent that the writ applicants are entitled to the interest for the delayed payment at the rate of 9% per annum - On the aggregate amount of refund, the writ applicants are entitled to 9% per annum interest from the date of filing of the GSTR38 - application disposed off.

Summary

Issues:
Delay in granting of refund under CGST Act - entitlement to compensation and interest.

Analysis:
The writ applicants sought mandamus for compensation and interest due to delay in refund under CGST Act provisions. The issue was found to be addressed in a previous judgment by the Court. The delay in refund for Willwood Chemicals Private Limited was detailed, showing significant delays ranging from 171 to 284 days for different months. The Court, referring to a previous case, allowed the writ application, granting the writ applicants 9% per annum interest for the delayed payment. The authority was directed to calculate the aggregate refund amount based on the provided chart and pay the interest from the date of filing of GSTR38. A timeline of two months was set for the authority to complete this calculation and payment process. Upon completion, the writ application was disposed of.