Refund of accumulated input tax credit under inverted tax structure must be processed promptly, with interest payable on delay.

Refund of accumulated input tax credit arising from an inverted tax structure was sought under Section 54 of the CGST Act, and the Department's failure to process the claim despite prior communications was treated as contrary to the statutory refund framework. The Court directed prompt processing of the refund and payment of interest within the time granted, giving effect to the obligation to deal with such claims within the prescribed timelines.

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Issues: Whether the refund application filed on account of accumulated input tax credit arising from an inverted tax structure was required to be processed and the refund disbursed.

Analysis: The refund claim was stated to arise under Section 54 of the Central Goods and Services Tax Act, 2017 on account of excess input tax credit accumulated due to inverted tax structure. The Department had not processed the refund despite prior communications, and the statutory timelines under Section 54 were relevant to the request for prompt processing.

Conclusion: The Department was directed to process the refund and credit the amount to the petitioner, with interest, within the time granted by the Court.

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