Delayed IGST refund interest applies from 24.05.2021, including sanctioned but unpaid shipping-bill amounts, at 6% per annum.

Delayed IGST refund interest was addressed in relation to 17 shipping bills, where 16 refunds had already been made and one sanctioned amount had not yet been credited. The delay in correcting shipping-bill data was linked to receipt of Customs Policy Wing recommendations on 24.05.2021 under Circular No. 04/2021-Customs dated 16.02.2021, and interest was treated as accruing after 60 days from that date. Interest at 6% per annum was directed for the 16 refunded shipping bills from 24.05.2021 until remittance, and the same rate was applied to the sanctioned but unpaid amount until actual receipt by the petitioner.

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Issues: Whether the petitioner was entitled to interest on the delayed refund of IGST in respect of the shipping bills already refunded, and on the amount that had been sanctioned but not yet credited for the remaining shipping bill.

Analysis: The refund claims arose from 17 shipping bills, of which 16 had already been refunded and one amount had been scrolled out and sanctioned but not yet remitted. The delay in correcting the shipping-bill data was traced to the receipt of recommendations from the Customs Policy Wing only on 24.05.2021 under Circular No. 04/2021-Customs dated 16.02.2021. On that basis, interest was held to accrue after 60 days from 24.05.2021. For the 16 refunded shipping bills, interest was directed at 6% per annum from 24.05.2021 until the dates of remittance. For the remaining sanctioned amount, interest was also directed at 6% per annum from 24.05.2021 until actual receipt by the petitioner.

Conclusion: The petitioner was held entitled to interest on the delayed IGST refund for all the shipping bills, including the amount already sanctioned but not yet paid, at 6% per annum from 24.05.2021.

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