Court grants compensation and interest for delay in CGST Act refund, sets 9% interest rate, 2-month timeline

The Court allowed the writ application seeking compensation and interest for delay in refund under the CGST Act, granting the writ applicants 9% per annum interest. The authority was directed to calculate and pay the aggregate refund amount based on a provided chart, with interest from the date of filing of GSTR38. A two-month timeline was set for this process, leading to the disposal of the writ application.

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Issues:
Delay in granting of refund under CGST Act - entitlement to compensation and interest.

Analysis:
The writ applicants sought mandamus for compensation and interest due to delay in refund under CGST Act provisions. The issue was found to be addressed in a previous judgment by the Court. The delay in refund for Willwood Chemicals Private Limited was detailed, showing significant delays ranging from 171 to 284 days for different months. The Court, referring to a previous case, allowed the writ application, granting the writ applicants 9% per annum interest for the delayed payment. The authority was directed to calculate the aggregate refund amount based on the provided chart and pay the interest from the date of filing of GSTR38. A timeline of two months was set for the authority to complete this calculation and payment process. Upon completion, the writ application was disposed of.

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