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TMI Blog2024 (4) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... reversed by the petitioner by filling Form DRC-03, the transfer of amount to the electronic credit ledger was only a memorandum entry on 01.07.2017 which was reversed on 18.12.2020. For all effect and purpose, the amount was never utilized by the petitioner and the Commissioner has also rightly not granted refund of the amount input tax credit which is utilized by the petitioner. It is pertinent to note that the petitioner made claim of refund for the amount of Rs. 42,35,215/- after considering already utilized amount of Rs. 3,45,133/- and there was shortfall of Rs. 22,500/ and therefore, the Commissioner, while granting refund, has taken into consideration this aspect and granted refund of only Rs. 42,34,894/- to the petitioner. Therefore, respondent-authority is required to calculate the interest on the amount as per the order passed by the appellate-authority from 01.07.2017 till the date of order i.e. 22.05.2023. The respondent authorities are directed to refund balance amount of Rs. 8,81,322/- within a period of four weeks from the date of receipt of copy of this order - Petition allowed. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .06.2017. 6. However, the Assessing Officer rejected the refund claim of the petitioner on the ground that the petitioner is not entitled to such refund as the petitioner has already availed transitional tax credit under section 140 of the GST act and therefore, on voluntary reversal of such credit, the petitioner could not have been granted the refund under the provisions of the VAT Act. 7. The petitioner being aggrieved by the order passed by the Assessing Officer preferred appeal before the Commissioner, who, by order dated 22.05.2023, allowed the appeal granting refund on unutilized input tax credit in the electronic ledger which was reversed by the petitioner. 8. The petitioner on receipt of the order of the appeal, preferred an application before the Assessing Officer requesting for release of the refund along with interest to be calculated as per the provision of the 38 of the Act 9. On receipt of such application, the Assessing Officer passed the order of refund along with interest from 01.07.2017 till the date of the order passed by the Commissioner i.e. 22.05.2023 and passed the refund payment order on 31.07.2023 granting refund of Rs. 57,32,306/- after calculating the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onic credit ledger and therefore, the respondent-authority has rightly calculated the interest from the date of reversal of such input tax credit by the petitioner on 18.12.2020 till the date of order passed by the appellate authority amounting to Rs. 6,16,090/-. Reliance was placed on the following averments of the affidavit-in-reply filed on behalf of the respondent-authority. 13. I say and submit that therefore, the respondent authorities have not at all reduced a single amount of refund which was allowed by the First appellate authority and as per the said order entire refund has already been granted to the petitioner. The answering respondent had merely corrected the calculation of interest on the said refund and even that interest component is already paid to the petitioner. As it can be evident from the facts of the case that when the petitioner reversed the ITC through DRC 03 on 18.12.2020 itself then the interest only accrued after 18.12.2020. Therefore, the calculation of interest amounting to Rs. 14,97,412/- was incorrect as it calculated interest from 01.07.2017 to 22.05.2023 and the correct calculation of interest was Rs. 6,16,090/- from 18.12.2020 to 22.05.2023 and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, be entitled to receive, in addition to the refund, simple interest at the rate of six per cent [per annum on the amount of such refund from the date immediately following the date of closer of the accounting year to which the said amount of refund relates] till the date of payment of amount of such refund. The interest shall be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Act or under the Central Act. If, as a result of any order passed under this Act, the amount of such refund is enhanced or reduced, such interest shall be enhanced or reduced accordingly : [***] (2) Where the realization of any amount remains stayed by the order of any court or authority and such order is subsequently vacated, interest shall be payable also for any period during which such order remained in operation. 19. On perusal of the above provision of subsection (2) of section 38 of the Act, it is clear that the registered dealer is entitled to refund from the date immediately following the date of closure of the accounting year to which the said the amount of refund relates till the date of payment of the amount of such refund ..... X X X X Extracts X X X X X X X X Extracts X X X X
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