TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 971
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...., challenging the non-grant of interest to the Petitioner on refunds which have been paid to the Petitioner in terms of the following Orders-in-Originals: Financial Year Date of Order-in-Original 2017-2018 19^th June 2023 2018-2019 19^th June 2023 2019-2020 19^th June 2023 2021-2022 24^th August, 2023. 3. On 27th May, 2025, this Court directed both the parties to examine the decision of this Court in W.P.(C) 7485/2024 titled as M/s G.S. Industries v. Commissioner of Central Tax and GST Delhi West and make submissions before this Court. 4. Mr. Kamal Sawhney, ld. Counsel for the Petitioner had handed over a chart, in terms of which, the interest is to be calculated. The said chart for the period 2017-18, 20....
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....reinafter 'CGST Act'). For ease of reference, the same is extracted below: Section 54 of the CGST Act "54. Refund of tax.- (1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed: Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed. ****** (5) If, on receipt of any such application, the proper officer is satisfi....
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....ediately 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 an order passed under the said sub-section (5)." 11. The entire scheme for grant of refunds under CGST Act has been considered by this Court in Bansal International v. Commissioner of DGST (W.P.(C) 11629/2023, decided on 21st November, 2023) and the relevant portion of the judgement is extracted below: ....
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....urther proceedings, which finally culminate in orders upholding the applicant's entitlement, and yet the payment 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....
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....ation till sixty days after filing of his second application pursuant to the appellate orders. In another words, the 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." 12. The stand of ld. Counsel for the Petitioner is that the deficiency memo was not issued within 15 days in terms of Rule 90 of Central Goods Services Tax Rules (hereinafter 'CGST Rules'). Hence, the interest is liable to be granted for the entire period. 13. The stand of the Department is that the deficiencies were genuine and they were cleared only after two months i.e., when the....