2024 (1) TMI 323 - SCH - GST

Interest on refund - HELD THAT - Although the Composition scheme was between March, 2020 to August, 2020, in the instant case, the respondents had sought benefit or extension of the Composition scheme only by one month, that is, September, 2020. It is pointed out by learned A.S.G. that there is no excess recovery made by the Department. However, the same is subject to verification and in the event, there is any excess recovery, the direction of the High Court shall prevail. SLP dismissed.

Summary

Issues involved:
The issues involved in the judgment are the interpretation of a scheme period, entitlement to interest on excess recovery, and the dismissal of a special leave petition.

Interpretation of scheme period:
The Supreme Court declined to interfere in the matter due to the peculiar facts of the case. The respondents sought an extension of the scheme for only one month beyond the original period, which was from March 2020 to August 2020.

Entitlement to interest on excess recovery:
The High Court had determined that the respondents were entitled to interest at a rate of 6% per annum on an excess recovery amount of Rs. 11,00,69,010. The Department argued that no excess recovery was made, but acknowledged that verification was necessary. The Supreme Court upheld the High Court's direction that if any excess recovery is found, the interest entitlement would prevail.

Dismissal of special leave petition:
The Supreme Court dismissed the special leave petition in light of the above considerations. Any pending applications were also disposed of as a result of the judgment.