2026 (8) TMI 1289

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....'ble Court may graciously be pleased to admit this writ petition and issue notice to the Opp. Parties to show cause as to why interest shall not be granted to the petitioner from July '2017 to March' 2021 as per Section 56 of the CGST/OGST Act on the refunded amount of Rs.17,59,39,952.00 and if the Opp. Parties fail to show cause or show insufficient cause, after hearing the parties, may issue direction to the Opp. Parties to grant interest to the petitioner on the refunded amount of Rs.17,59,39,952.00 within a stipulated time. And/or pass such other order(s) as this Hon'ble Court may deem fit and proper in the circumstances of the case. And for which act of kindness, the petitioner shall as in duty bound ever pray." 2.....

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....he said judgment, which read thus: "7. With the factual and legal position as discussed above, it is manifest that the IGST collected on the quantum of "ocean freight" on the basis of Notifications dated 28.06.2017 is found to be illegal and in pursuance of Order dated 01.08.2022 of this Court in the petitioner's own case the Revenue has refunded the amount. It is in dispute whether the petitioner is entitled to interest on said refunded amount from the date of its deposit as the levy itself was declared not in consonance with the constitutional provisions. There is nothing in Mohit Minerals Pvt. Ltd. (supra) to comprehend that the interpretation and declaration of the Hon'ble Supreme Court of India would operate prospectively. ....

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....rt directs the opposite parties to pay interest on the amount of the IGST as refunded. 7.3. Since the question involved in the present case relates to interest on amount refunded, it is clear that the petitioner is entitled to interest on the amount refunded with respect to IGST collected on "ocean freight" for the period the opposite parties retained the same and restrained the petitioner from utilising it. In other words, such interest should commence to run from the date on which the petitioner parted with the money in the first instance and was restrained from using such amount representing the IGST on the component of "ocean freight". 7.4. The refund itself is as a result of a finding that the tax ought not to have be....