2023 (10) TMI 1150 - HC - GST

Claim of interest on Refund of accumulated Input Tax Credit due to inverted tax - amount of refund already sanctioned - HELD THAT - The learned counsel appearing for the petitioner has handed over a photocopy of the order dated 09.10.2023 whereby the refund of ₹8,76,636/- has been sanctioned, however, with a caveat that the same is subject to the review order and to the outcome of any appeal that may be preferred by the Revenue before the Appellate Tribunal as and when the same is constituted. Since the petitioner has prevailed before the Appellate Authority, the Order-in-Appeal dated 06.06.2023 is required to be implemented. It is seen that although the Revenue has processed the petitioner s claim for refund of ₹8,76,636/-, no interest has been provided. The respondent is directed to disburse interest, if any, payable to the petitioner in accordance with law within a period of two weeks from today - Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are related to the processing of a refund claim for accumulated Input Tax Credit due to an inverted tax structure, the implementation of an Order-in-Appeal, and the disbursement of interest on the refunded amount.

Refund Processing Issue:
The petitioner filed a petition seeking direction for the respondent to process a refund of accumulated Input Tax Credit amounting to Rs. 8,76,636/- for the period September 2020. The Adjudicating Authority initially rejected the refund application, but the petitioner appealed to the Appellate Authority under Section 107 of the Central Goods & Services Tax Act, 2017. The appeal was allowed through an Order-in-Appeal dated 06.06.2023. Despite the favorable decision, the respondent had not implemented the order, prompting the petitioner to file the present petition.

Implementation of Order-in-Appeal:
The petitioner provided a photocopy of an order dated 09.10.2023, which sanctioned the refund amount but with a caveat subject to review and any potential appeal by the Revenue before the Appellate Tribunal. As the petitioner succeeded before the Appellate Authority, the Order-in-Appeal dated 06.06.2023 needed to be enforced. Although the Revenue processed the refund claim, no interest was provided on the refunded amount.

Interest Disbursement Issue:
The court directed the respondent to disburse any interest payable to the petitioner within two weeks in accordance with the law. It was clarified that the disbursement of the refund amount or interest would not prevent the respondent from seeking statutory remedies available in law. The petition was disposed of with these terms.