2023 (5) TMI 796

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....IBHU BAKHRU, J. (Oral) 1. The petitioner has filed the present petition, inter alia, claiming interest on the amount of Rs.68,37,488/-. 2. By an order dated 04.10.2021, a refund of Rs.1,12,98,201/- was sanctioned. This comprised of Rs.44,60,713/- on account of State Goods and Services Tax (SGST); Rs.44,60,713/- on account of Central Goods and Services Tax (CGST), and Rs.23,76,775/- on account of Integrated Goods and Services Tax (IGST). 3. The refund of SGST for the amount of Rs.44,60,713/- was processed and disbursed on 09.03.2022. However, the refund of CGST and IGST was not processed despite the refund order dated 04.10.2021, sanctioning the same. This led the petitioner to file the present petition, inter alia, claiming a refun....

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....rving the petitioner's right to do so in the pending appeal. 7. He, however, requests that directions be issued for an expeditious disposal of the petitioner's appeal. 8. In so far as the interest for the period commencing from 04.10.2021 is concerned, this Court had expressed its prima facie view in the order dated 01.05.2023, that the same would be payable as there has been an inordinate delay in disbursing the refund. 9. Mr. R. Ramachandran, learned counsel for the respondents submits that the concerned department is unable to process the refund as there is no statutory provision for grant of this refund. 10. Interest is essentially a compensation to a person who has been deprived of use of the amounts due to him. It is relev....

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....me Court has endorsed the principle that interest would be payable even in cases where there was no statutory provision for payment of interest. 12. We are, therefore, of the view that the petitioner is entitled to interest on the sum of Rs.68,37,488/- from 01.11.2021 (considering an allowance of twenty-six days for the respondents to comply with the refund sanction order dated 04.10.2021) till the date of payment, that is, 27.04.2023. 13. In so far as the rate of interest is concerned, the same is required to be compensatory and not necessarily pegged at 6% per annum as contended by Mr Ramachandran. However, since the learned counsel for the petitioner states that the rate of 6% per annum, and the same is also stipulated rate of inte....