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2023 (5) TMI 751 - HC - GSTInterest on delayed disbursement of Interest - rate of interest on delayed refund - HELD THAT - Insofar as the interest for the period prior to 04.10.2021 is concerned, the same was not sanctioned and the petitioner s appeal in respect of the same is pending before the Appellate Authority. Insofar as the interest for the period commencing from 04.10.2021 is concerned, this Court is, prima facie, of the view that the petitioner is entitled to the same as there has been an inordinate delay in disbursing the refund. The petitioner also challenges the provision of Section 56 of the Central Goods and Services Tax Act, 2017 read with the Notification No.13/17-Central Tax dated 28.06.2017 insofar as it limits the rate of interest on delayed refund at 6% per annum. However, the learned counsel for the petitioner does not press for the said relief, and no orders are required to be issued in this regard. Issue notice.
Issues involved: Petitioner seeking direction for remaining refund of Input Tax Credit, claiming interest, challenge to Section 56 of CGST Act regarding interest rate limitation.
Summary: 1. The petitioner filed a petition seeking direction for the respondents to disburse the remaining amount of refund of Input Tax Credit towards CGST and IGST as per the refund order dated 04.10.2021, totaling to Rs. 68,37,488, along with interest on the said amount. 2. Although the refund has been disbursed to the petitioner after filing the petition, the petitioner asserts entitlement to interest from 04.10.2021 until the date of disbursement. 3. The interest for the period prior to 04.10.2021 was not sanctioned, and the petitioner's appeal regarding the same is pending before the Appellate Authority. The Court is inclined to believe that the petitioner is entitled to interest from 04.10.2021 due to the delay in refund disbursement. 4. The petitioner challenges Section 56 of the Central Goods and Services Tax Act, 2017, along with Notification No. 13/17-Central Tax dated 28.06.2017, which limits the rate of interest on delayed refund to 6% per annum. However, the petitioner's counsel does not press for this relief, and no specific orders are required in this regard. 5. Notice has been issued on the matter. 6. The counsel for the respondents has accepted the notice and requests time to seek instructions. 7. The case is listed for further proceedings on 15.05.2023.
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