The Punjab and Haryana High Court addressed the issue of refund ...

High Court held interest on excess ITC refund accrues after 60 days of application. Interest payable from 27.01.2021 (relevant to the date of original application) to refund date. Petition allowed.

Case Laws     VAT and Sales Tax

May 21, 2024

The Punjab and Haryana High Court addressed the issue of refund of excess Input Tax Credit (ITC) and entitlement to interest on delayed refund. The petitioner's application for refund of excess ITC from 2010-11 to 2013-14 was rejected, directing them to apply from the relevant year. The court held that interest on the refund accrued from the date of the first application (27.11.2020) and should have been paid after sixty days. The subsequent assessment proceedings did not affect the petitioner's right to interest on the accrued amount. The court allowed the petition, directing payment of interest on the refunded amount.

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