TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 103
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....for the petitioner, learned advocate Mr. Parth Mehta for learned Senior Standing Counsel Mr. Ankit Shah for respondent No.1, learned Senior Standing Counsel Mr. C.B.Gupta for respondent Nos. 2 and 3 and learned Assistant Government Pleader Ms. Shrunjal Shah for respondent Nos. 4 and 5. 2. Rule returnable forthwith. Learned advocates for the respondents waive service of notice of rule. 3. Learned advocate Ms. Himanshi Patwa for the petitioner, at the outset, submitted that after filing of the petition before this Court, the respondent-authorities have sanctioned the refund pursuant to the refund claim made by the petitioner, however, no interest is awarded to the petitioner as per the provision of section 56 of the Central/State Goods ....
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....00 which was normally a success code in IGST integration and no window was provided to rectify the error code SB000 at Hazira Port. As the petitioner was entitled to the refund of the IGST paid on the export, in view of the incorrect code, the scroll amount pertaining to the petitioner was showing 'NIL' which was transmited from GSTIN and therefore, such data transmitted from GSTIN was not reflected properly. 4.3 It is the case of the respondents that several efforts were made to resolve the issue by writing letters to the DG Systems and Saksham Seva Help Desk but no fruitful result was received and written request of the petitioner was rejected by the concerned State GST Authority citing the reason that as per ICE-GATE Help Desk the pet....
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....itted by the petitioner, the respondent-authority has failed to show that how the petitioner has not filed accurately the GST return in the Shipping Bills which has led to non-processing of the refund claim. 9. On the contrary, in the affidavit filed on behalf of the respondent affirmed on 28.08.2025, it is averred as under: "5. That, normally all the Integrated Goods and Services Tax (IGST) Refuns are processed automatically in the Indian Customs Electronic Data Interchange System (ICES) as per following procedure: "That processing of the refund of Integrated Goods and Service Tax (IGST) paid at the time of export of goods is automated. Customs Electronic Data Interchange (EDI) System has an inbuilt mechanism to automa....
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....ng of refund claims. The IGST cannot be held up by the department unless there is an alert on the exporter. It is just the procedure which has been mentioned in the said order and it is same for all exporters. Moreover, if the department holds that the petitioner is at fault, then the refund of IGST would not have been given manually." 10. In view of the averments made on oath on behalf of respondent Nos. 2 and 3, it is clear that there was no fault on the part of the petitioner for submitting the Shipping Bills but there was a technical glitch in the system which has resulted into delayed payment of refund as the Commissioner was required to direct for manual processing to issue the refund after filing of this petition. 11. Section 5....
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....late Authority, Appellate Tribunal or by the court shall be deemed to be an order passed under the said sub-section (5)." 12. The said provision of section 56 of the GST Act clearly provides that when the tax payer is not granted the refund as per the provision of section 54(5) of the GST Act within 60 days from the date of receipt of the refund application, which in the facts of the case is the date of filing of the Shipping Bills, interest is required to be paid to the tax payer-assessee. Provision of section 56 of the GST Act is a mandatory provision and the interest which is required to be paid under section 56 is compensatory in nature for delayed payment of refund which otherwise is not in dispute. Therefore, the respondents are re....