TaxTMI 
TaxTMI 
2025 (11) TMI 114
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....ed by the Petitioner under Articles 226 and 227 of the Constitution of India, inter alia, seeking expeditious disposal of the refund applications filed by the Petitioner. 4. The case of the Petitioner is that the Petitioner had paid an excess amount of Integrated Goods and Services Tax (hereinafter, 'IGST') during the period from April, 2019 to June, 2020 of a sum of Rs. 1,87,84,018/-. The refund applications themselves were filed in April, 2022 but were rejected vide orders dated 6th July, 2022 and 7th July, 2022 citing certain deficiencies. Revised refund applications were filed on 30th March, 2023 and 31st March, 2023 and no deficiency memo was issued in terms of the timelines fixed within the 15 days. 5. However, thereafter, a def....
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.... ****** (5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57. ****** (7) The proper officer shall issue the order under subsection (5) within sixty days from the date of receipt of application complete in all respects." Section 56 of the CGST Act "56. Interest on delayed refunds.-If any tax ordered to be refunded under sub-section (5) of section 54 to any applicant is not refunded within sixty days from the date of receipt of application under sub-section (1) of that section, interest ....
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....d on 21st November, 2023) and 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 Section 56 of the CGST Act and the proviso to Section 56 of the CGST Act is materially different. Whereas, the main provision of Section 56 of the CGST Act provides for an interest at the rate not exceeding 6% per annum, the proviso to Section 56 of the CGST Act stipulates interest at the rate not exceeding 9% per annum. 32. The learned counsel also informed this Court that the interest at the rate of 6% per annum and 9% per annum has been notified for the purposes of Section 56 of the CGST Act and the proviso to the said section, respectively. ....
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....f 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 ....
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....at the deficiencies were genuine and they were cleared only after two months i.e., when the documents were submitted and the same was duly acknowledged on 11th February, 2020. 14. The scheme of payment of interest on delayed refunds can be illustrated in the following flow chart. Note -1: For the period from FORM GST RFD-01 till the second refund application, 6% interest would be liable to be paid. Note-2: If the second refund application is filed, then upon expiry of 60 days, interest would be liable to be paid @ 9% per annum. Payment of Interest in an Application for Refund under Section 56 of CGST Act read with Rule 90 of CGST Rules 15. Considering the overall circumstances, this Court is of the view t....