Refund of mistaken tax payment allowed with 9% interest after records showed no input tax credit claim and immediate refund request.

Refund of an amount paid under an impugned demand was treated as justified where the records showed that input tax credit had not been claimed for the passenger vehicle, the payment had been made only against the earlier demand, and a refund application was filed immediately thereafter. The Court accepted the authority's verification that the sum had been mistakenly paid and was refundable, and held that insisting on further technical adjudication was unwarranted. Interest was also directed on the refunded sum at 9% from 05.08.2020, payable within one month.

---

---

Issues: Whether the petitioner was entitled to refund of the amount paid under the impugned demand and to a direction for payment of interest on the refunded sum.

Analysis: The competent authority had verified the documents and recorded that the petitioner had not claimed input tax credit in respect of the passenger vehicle and had paid the amount only under the demand raised earlier. The record also showed that the petitioner had applied for refund immediately thereafter and that the first respondent had intimated the second respondent that the amount had been mistakenly paid and was refundable. In these circumstances, insisting on further technical adjudication was held to be unwarranted.

Conclusion: The petitioner was held entitled to refund of the amount paid, along with interest at 9% from 05.08.2020, payable by the second respondent within one month.

---