9911796707
TMI Blog2024 (1) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner filed an application for refund of Rs. 14,42,900/- on 18.10.2021, pursuant to which, the refund was sanctioned on 08.12.2021 i.e. within the statutorily prescribed time period of effectuating refund within 3 months from the date of receiving an application to that effect. Therefore, having satisfied the requirement of effectuating refund within the prescribed time period, no liability qua awarding interest in favour of the petitioner, accrues. Considering the fact that the Act of 1944 is a self-contained code, which provides a definite and systemic mechanism for the recovery of demand and the consequential refund thereof, this Court cannot issue directions dehors the law whilst disregarding the statutorily prescribed mechanism ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 24.04.2019, the Department issued a SCN to the petitioner, for an amount of Rs. 14,42,900/- against the previously collected amount of Rs. 28,81,464/-. 3.3 That consequentially, the Department issued a demand order dated 23.07.2020 for Rs. 14,42,900/-. The said demand was met through appropriation from the amount collected earlier i.e. Rs. 28,81,464/-. 3.4 That being aggrieved of the said demand order, the petitioner filed an appeal before the CGST Commissioner (Appeals) on 12.10.2020. 3.5 That meanwhile, on 03.09.2021, the petitioner also filed an application for refund of the excess amount collected i.e. Rs. 14,38,564 i.e. the amount qua which no SCN was issued by the Department. Along with refund, the petitioner also claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same for everyone, be it a tax-paying citizen, bank or a government body. Therefore, interest is always a relevant consideration for every entity. The only variable factor of interest may be its rate, which may vary between individuals/banks etc. Accordingly, as per the principle of equity, it was the duty of the respondent-authorities to refund the due amount in favour of the petitioner by themselves, within a reasonable time. However, the said refund was not made in a timely manner, which inadvertently caused not only prolonged undue harassment but also financial loss to the petitioner in terms of blockage of working capital and the consequential loss of interest. Therefore, it was averred that the petitioner, on account of the undue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding thirty per cent. Per annum as is for the time being fixed [by the Central Government, by notification in the Official Gazette], on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty: Provided that where any duty ordered to be refunded under sub-section (2) of section 11B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, accrues. 10. Therefore, considering the fact that the Act of 1944 is a self-contained code, which provides a definite and systemic mechanism for the recovery of demand and the consequential refund thereof, this Court cannot issue directions dehors the law whilst disregarding the statutorily prescribed mechanism mandatorily required to be followed in cases of refund. 11. Hence, relying upon the observations made hereinabove, this Court is inclined to dismiss the present writ petition. 12. However, if the petitioner chooses to do so, liberty is granted in its favour to file an appropriate representation before the higher authorities of the respondent-department, outlining the harassment caused to the petitioner on account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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