2023 (10) TMI 1150 - HC - GST

Refunded Input Tax Credit: Respondent Ordered to Pay Interest Within Two Weeks While Preserving Statutory Remedies.

The HC disposed of the petition by directing the respondent to disburse any interest payable on the refunded Input Tax Credit amount within two weeks, as ... Claim of interest on Refund of accumulated Input Tax Credit due to inverted tax - amount of refund already sanctioned - HELD THAT:- The learned counsel appearing for the petitioner has handed over a photocopy of the order dated 09.10.2023 whereby the refund of ₹8,76,636/- has been sanctioned, however, with a caveat that the same is subject to the review order and to the outcome of any appeal that may be preferred by the Revenue before the Appellate Tribunal as and when the same is constituted. Since the petitioner has prevailed before the Appellate Authority, the Order-in-Appeal dated 06.06.2023 is required to be implemented. It is seen that although the Revenue has processed the petitioner’s claim for refund of ₹8,76,636/-, no interest has been provided. The respondent is directed to disburse interest, if any, payable to the petitioner in accordance with law within a period of two weeks from today - Petition disposed off. Petition under Article challenging non-implementation of an Order-in-Appeal dated 06.06.2023 directing refund of accumulated Input Tax Credit (inverted tax structure) of Rs.8,76,636/- for September 2020. The Adjudicating Authority had rejected the refund; appeal under Section 107, CGST Act was allowed. Revenue processed the refund by order dated 09.10.2023 but conditioned it as 'subject to the review order and to the outcome of any appeal that may be preferred by the Revenue before the Appellate Tribunal as and when the same is constituted.' Court held that having prevailed before the Appellate Authority, the Order-in-Appeal must be implemented and directed respondent to 'disburse interest, if any, payable to the petitioner in accordance with law within a period of two weeks from today.' Clarification: disbursal of refund or interest will not preclude the respondent from availing statutory remedies. Petition disposed in these terms.