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TMI Blog2024 (9) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... s been made clear under the Section, i.e., Section 54 of the GST Act - Even though it was argued on behalf of the Revenue that, ITC itself was only 5%, however voluntarily an excess payment has been made which has been admitted by the seller of the dealer concerned, that cannot ipso facto being an advantage to the dealer to claim refund by invoking the provisions of Section 54 r/w.Section 56 of the GST Act, we are not impressed with the said argument for the reason being that, the very intention of the legislature is to provide the refund only, when there has been an excess amount of tax being collected by way of ITC, that has to be set right by way of refund, if the output tax is lesser than the ITC. If this principle is applied, certainly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . SURESH KUMAR, J. These intra-Court appeals have been directed against the common order passed by the writ Court, dated 16.11.2023 made in W.P. Nos. 10852 and 10855 of 2023. 2. That the question that was posted before the writ Court was whether the dealer namely, M/s.Suzlon Energy Limited, who was the first respondent herein, is entitled to get the refund or not. 3. The necessary facts relating to the filing of the said writ petitions were that, the first respondent had procured the materials from the supplier, where the supplier paid IGST at the rate of 18% and made the supply. However, insofar as the final product is concerned, the first respondent was liable to pay IGST only at the rate of 5%. Even though the supplier was supposed to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to get the refund under the said provisions of the Act and therefore, confirmed the order passed by the Appellate Authority dated 22.07.2022 and 28.07.2022 respectively. 7. That apart, the writ Court also by taking into account of Section 56 of the GST Act has allowed 9% interest per annum for refund, for which, the first respondent was entitled to. 8. Questioning these orders only, the present appeals have been directed at the instance of the Revenue. 9. Heard Mr.J.Kumaran, learned Additional Government Pleader (Pondy) appearing for the appellant and Mr.Raghavan Ramabadran, learned counsel appearing for the first respondent. 10. It was argued by the learned Additional Government Pleader appearing for the appellant that, the 18% input tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28.06.2017 which is in consonance with Section 56 of the GST Act, the maximum rate of interest can be fixed only at 6%, therefore, to that extent, the fixation at 9% interest by the writ Court through the order impugned may require some modification at the hands of the Division Bench. 13. We have considered the said submissions made by the learned counsel appearing for both sides and have perused the materials placed before this Court. 14. As has been rightly held by the writ Court, the provisions under Section 54 is made clear that, when the input tax paid is higher than what has been paid by way of tax for the output, then the dealer is entitled to seek for refund of the excess amount by way of ITC. This has been made clear under the Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ximum rate of interest at 6%, beyond which, allowing the 9% as per the order of the writ Court for paying the interest for the refundable amount of tax is concerned, which is excess beyond the notification and also is not in consonance with Section 56, therefore, to that extent, the rate of interest as allowed by the learned Judge through the impugned order requires modification. 19. Insofar as the submission that has been made with regard to the sixty days period which starts only from the finality that has been reached in the Court of Law by citing the proviso to Section 56 is concerned, insofar as the said proviso to Section 56 since has been clarified in the explanation itself, where it makes very clear that, for the purpose of the Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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