2025 (1) TMI 293 - HC - GST

Taxpayer Wins Refund Claim: CGST and IGST Reimbursement Ordered with Interest for Delayed Payment

Sunil Pramanik Versus Union of India and others

HC allowed petitioner's writ petition seeking CGST and IGST refund of Rs. 51,501 and Rs. 68,502 respectively. Court directed respondent to immediately ... Direction upon the respondents to forthwith disburse the remaining amount of sanctioned refund along with applicable rate of interest for delayed disbursement of claim of refund - HELD THAT:- The CGST authorities cannot be permitted to retain or hold back the amount which has been directed to be refunded in terms of the refund sanction order dated 25th September, 2019 - the respondent no.2 directed to forthwith take steps for issuance of payment advice in favour of the petitioner. Petition disposed off. In the case before the Calcutta High Court, the petitioner sought a directive for the immediate disbursement of a sanctioned refund of Rs. 51,501 under CGST and Rs. 68,502 under IGST for the period from January 2019 to March 2019, including interest for delayed payment, as per an order dated 25th September 2019. The petitioner had received the SGST refund but claimed the CGST refund was still pending. The court noted that the refund sanction order had been issued on 25th September 2019 in Form GST RFD-06, and payment advice was provided by the State authorities on the same date.The court held that the CGST authorities could not retain the refund amount as directed by the sanction order and directed respondent no.2 to issue the payment advice to the petitioner immediately. Additionally, the respondent was instructed to calculate the interest for the delayed payment and disburse it along with the refund. The computation details were to be provided to the petitioner within six weeks from the order's communication. The writ petition was disposed of with no order as to costs, and urgent certified copies of the order were made available upon request.