TaxTMI 
TaxTMI 
2025 (5) TMI 2072
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....ely. The deficiency memos were issued to the Petitioner in FORM GST RFD-03 on 29th November, 2019 to which the Petitioner filed a reply on 27th January, 2020. Acknowledgements under FORM GST RFD-02 were generated on 11th February, 2020. However, despite the said acknowledgements, the refund was not granted with interest within 60 days in terms of Section 54 (7) of the Central Goods and Service Tax Act, 2017 (hereinafter 'CGST Act). After repeated follow-ups, since there was no response, a writ petition being W.P.(C) 9321/2020 titled G.S. Industries v. Principal Commissioner of Central Goods & Services Tax & Ors was filed by the Petitioner. The Court, on 24th November, 2020, upon hearing the parties, passed the following order: "W.P. (C) 9321/2020 The petition has been listed before this Bench by the Registry in view of the urgency expressed therein. The same has been heard by way of video conferencing. Present writ petition has been filed for issuance of a direction to the Respondents to release the GST refund due to the Petitioner amounting to Rs. 37,56,750/- for the period of September, 2017 to March, 2018 and April, 2018 to March, 2019 with interest thereon in ....
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....prevail in their challenge to order-in-appeal dated 03.01.2022, the respondents would also be entitled to take consequential action for recovery of any amount that has been disbursed, albeit in accordance with the law." 7. Finally, on 9th June, 2023, the refund was sanctioned by the Deputy Commissioner, CGST Delhi West, but without granting complete interest. The operative portion of the said order reads as under: "1. I hereby sanction an amount of INR Rs. 37,54,306/- (Rupees Thirty Seven Lakhs Fifty four thousand three hundred and six only) (Rs.1004479/- as CGST+ Rs.2749827/- as SGST+0/- as IGST)/ - to M/s G.S. Industries having GSTIN:- 07AMOPS2765G 1ZK under Rule 92 of CGST Rules, 2017 read with section 54 of the CGST Act,2017 for the refund period September, 2017 to March, 2019 filed by the party vide ARN No. AA0702220109810 dated 04-02-2022 2. I hereby sanction an amount of Rs. 45,669/- | Rupees Forty Five Thousand six hundred and sixty nine only) (Rs. 12,219/- as CGST + 33,450/-as SGST) to M/s G.S. Industries having GSTIN: - 07AMOPS2765G1ZK as Interest in compliance of Hon'ble High Court's order dated 28.03.2023" 8. As can be seen from the above....
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....ation issued by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax: Provided that where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent. as may be notified by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund. Explanation. --For the purposes of this section, where any order of refund is made by an Appellate Authority, Appellate Tribunal or any court against an order of the proper officer under sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate Tribunal or by the court shall be deemed to be ....
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....ion 56 of the CGST Act that whereas the main provision of Section 56 of the CGST Act refers to the rate of interest applicable on the amount of refund due, which remains unpaid even after sixty days from the date of application for refund; the proviso provides for an increased rate of interest for the period that commences from the date immediately after the expiry of sixty days from the date of application which is filed pursuant to the claim for refund attaining finality in appellate proceedings. Section 56 of the CGST Act, thus, works as follows. The applicant claiming a refund is entitled to interest at the rate of 6% per annum from a date immediately after the expiry of sixty days from making an application under Section 54 (1) of the CGST Act. However, if a person's claim is denied (or if granted is not accepted by the Revenue) and the order of the Adjudicating Authority is carried in appeal to the Appellate Authority or to the Appellate Tribunal/High Court, which finally upholds the claim, the applicant may have to file a second application to secure the refund. If such application for refund filed by the person consequent to succeeding before the Appellate Authority, Appell....
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....ill 9th June, 2023 (i.e., date of sanction of refund). However, fromthis entire period, the number of days between 29th November, 2019 and 11th February, 2020 (i.e., 74 days), which was the period taken for responding to the deficiency memo by the Petitioner, shall be deducted. 17. For ease of reference the relevant dates along with the allowed interest are captured in the table below: Dates Events Interest Rates Appliable 4th July, 2019 and 9th July, 2019 First set of refund applications filed. No Interest as the same accrues only beyond 60 days under Section 54 of CGST Act 19th July, 2019 and 24th July, 2019 The deadline for issuance of deficiency memos in terms of Rule 90 of CGST Rules. 7th September, 2019 and 9th September, 2019 60 days from the date of refund applications i.e., the date from which the interest on refunds starts to accrue in terms of Rule 90 of CGST Rules 6% interest from 7th& 9th September, 2019 to 28th November, 2019 29th November, 2019 The date of issuance of deficiency memos to the Petitioner on FORM GST RFD-03 No Interest is to be granted between 29th November, 2019 and 11th February, 2020 (74 days) on the groun....