2024 (1) TMI 286 - HC - GST

Non-payment of the interest on refund - relevant date - there were deficiencies and the deficiencies were later on rectified by the petitioner. - HELD THAT - The provisions of Section 56 of the Act of 2017 interalia provides that if any tax ordered to be refunded to any applicant is not refunded within 60 days from the date of receipt of application the interest at such date not exceeding 6% shall be payable for the period of delay beyond 60 days - It is not in dispute that in three cases there were deficiencies and the deficiencies were later on rectified by the petitioner. The provisions of Section 56 of the Act of 2017 interalia provides that if any tax ordered to be refunded to any applicant is not refunded within 60 days from the date of receipt of application the interest at such date not exceeding 6% shall be payable for the period of delay beyond 60 days. The indications made in Section 56 of the Act of 2017 pertaining to the date of receipt of the application can only be read as date of receipt of a complete application i.e. in case there are deficiencies from the date the deficiencies are removed by the applicant - As in the present case there were deficiencies in three cases and in one case there was no deficiency and the amount of CGST SGST and IGST have been refunded to the petitioner beyond 60 days the respondents are required to determine the actual delay and make payment of the amount of interest to the petitioner in terms of provisions of Section 56 of Act of 2017. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are non-payment of interest on refund and failure of the Appellate Authority to adjudicate on the matter raised by the petitioner.

Summary:
The petitioner filed petitions due to the non-payment of interest on refund and the Appellate Authority's failure to address the issue. The petitioner sought refund by submitting the required forms and documents. Although deficiencies were initially pointed out by the respondents, they were rectified by the petitioner. However, interest entitled under Section 56 of the Central Goods and Services Tax Act, 2017 was not paid along with the refund. The petitioner argued that interest should have been paid from the 60th day of the refund application, as per the Act. The respondents contended that deficiencies in the applications delayed the process, but the petitioner disagreed. The Court noted that while deficiencies existed in three cases, one refund application had no deficiencies. The Court emphasized that interest should be paid if the refund is not granted within 60 days of a complete application. Therefore, the respondents were directed to calculate and pay the interest amount to the petitioner as per Section 56 of the Act of 2017. The petitioner was instructed to apply for the interest amount, which should be paid within four weeks from the date of application submission.