2022 (12) TMI 487 - HC - Customs

Refund of IGST - interest on the delayed transmission of refund of IGST - mismatch in the information furnished by the petitioner concerning the shipping bill qua which IGST has not been refunded - HELD THAT - The only case, in which the date of payment is not noted, is the shipping bill, in which case, the amount is scrolled out i.e., sanctioned , but not remitted. Interest will be paid on the shipping bills, the details with regard to which are given, at the rate of 6 percent p.a., commencing from 24.05.2021, till the date of remittance - The contesting respondents will ensure, that the interest is paid in respect of 16 shipping bills referred to above, as expeditiously as possible, though not later than six (6) weeks from today. Petition disposed off.

Summary

Issues:
Refund of IGST amount, errors in shipping bills, interest on delayed refund, mismatch in information, interest accrual, calculation of interest, remittance of outstanding amount.

Analysis:
The petitioner sought a refund of IGST amounting to Rs.53,97,397 against 17 shipping bills, acknowledging errors in certain bills. By the previous date, refund for 16 bills had been received, leaving Rs.3,78,045 outstanding for one bill. The petitioner also requested interest on delayed refunds, citing a circular from 16.02.2021. The respondents needed time to address the mismatch in information provided by the petitioner. The court noted the need to examine the matter further, particularly regarding the outstanding shipping bill and interest issues, and scheduled the next hearing for 17.11.2022.

On the mentioned date, the petitioner had received refunds for 16 bills but had outstanding amounts for one bill. The two outstanding grievances were the lack of interest on the 16 refunded bills and the pending refund of Rs.3,78,045 along with interest. The court was informed that the amount in question had been sanctioned but not credited to the petitioner's account yet. The respondents confirmed this position. The court reviewed the counter-affidavit filed by the respondents, highlighting delays in recommendation receipt from the Customs Policy Wing.

Considering the delays, the court directed interest to accrue in favor of the petitioner for refunded amounts after sixty days from the recommendation receipt date. The petitioner expressed satisfaction with this direction. Detailed data from case papers was provided to facilitate interest calculation. The court specified interest rates and timelines for payment, ensuring prompt action by the respondents. The judgment concluded by disposing of the writ petition based on the terms outlined, with parties instructed to act upon the digitally signed order.