2025 (7) TMI 549

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....hereinafter, 'impugned judgment'). Vide the present review petition, the Petitioner seeks interest for the period 3rd March, 2020 till 28th August, 2023. 3. The impugned judgment passed by this Court has given proper reasons as to why for the said period, interest has not been granted. The relevant paragraph is extracted below: "10. Heard the parties. The short question is - (i) whether the Petitioner is entitled to refund and if so, to what amount and (ii) whether any interest is payable if so to what extent. A refund application is to be filed under Rule 89 of the Central Goods and Services Tax Rules, 2017(hereinafter 'CGST Rules'). As per Rule 90 of the CGST Rules, the proper officer shall within 15 days of the application, s....

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....ust 2023, when the Petitioner stated that it could not file a reply to the Deficiency Memo due to the Covid-19 pandemic. Vide this letter, the refund was once again sought by the Petitioner. 13. The entire scheme for grant of refunds has been considered by this Court in Bansal International v. Commissioner of DGST (W.P.(C) 11629/2023, decided on 21st November, 2023) wherein the Court has clearly held that a party would be entitled to interest on the amount of refund commencing from the date immediately after the expiry of 60 days from the date when an application has been received. The relevant portion of the judgement is extracted below: "31. It is important to note that the rate of interest as specified in the main provision of Sect....

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....ent is not made within a period of sixty days from an application filed pursuant to such orders, the person is required to be compensated at a higher rate of interest, of 9%per annum. This higher rate of interest would run from the date immediately after the expiry of sixty days of the filing of such an application - that is, the application filed pursuant to the orders of the appellate fora and not the first application. 33. It is clear from a plain reading of Section 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....

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.... proviso merely enhances the interest payable to a person for the period commencing from the date immediately after sixty days from the date of his application filed pursuant to its entitlement to refund claim attaining finality." 14. The efficacy of the said scheme is contingent upon the Department adhering to the specific timelines prescribed under the Act and the Rules, which, in the present case, have evidently not been complied with. For whatever reason, the refund or acknowledgment has not taken place till date and the Department has continued to retain the amount. 15. However, even as per the counter affidavit, it is clear that the amount can no longer be retained by the Department. Therefore, in the opinion of this Court, the ....