Court Details Judges:
- Vibhu Bakhru & Amit Mahajan
- Petitioner’s Counsel: Sandeep Chilana, Snehil Sharma, Prem Kandpal & Ms. Anjali Jain
- Respondent’s Counsel: Neeraj, Rudra Paliwal, Vedansh Anand, R. Ramachandran, Rajeev Aggarwal & Ms. Shilpa Singh
Case Summary
In this case, the petitioner has filed a petition seeking interest in a delayed refund. The petitioner argues that while the refund of SGST has been processed, the refund of CGST and IGST has not been processed despite the refund order. Therefore, it is contended that interest should be paid due to the significant delay in disbursing the refund.
High Court Ruling
The Honorable High Court acknowledges that the refund of SGST has been processed, but the refund of CGST and IGST was processed after the writ petition was filed. Even in situations where there is no statutory provision for the payment of interest, interest can be payable in case of unreasonable delays in refund disbursement. However, in this particular case, the Statute itself stipulates a 6% rate of interest to be paid by the department in case of refund processing delays. Consequently, the Court has directed the department to expedite the payment of interest at a rate of 6% per annum.