Once the refund application had been processed and or order passed, which has attained finality, the respondents cannot escape the plain effect of the same. They also cannot escape the liability of interest that arises on noncompliance of the same.
Section 54 of the CGST Act, 2017 — Refund —–The applicant sought directions to the respondent to refund Rs. 1,28,50,535/- that became due to the petitioner under the order dated 06.01.2020. That amount of refund relates to the month July, 2019. He further prayed for award of interest. The court observed that there is no dispute to the fact that an amount of Rs. 1,28,50,535/- is refundable to the petitioner for the month of July, 2019. The application for refund was filed by the petitioner manually, on 27.09.2019 yet the same was not processed and the refund was not directed to be paid within a period of sixty days therefrom.
Held that:- The Hon’ble High Court directed that the Respondent shall refund the entire amount of Rs. 1,28,50,535/- together with interest from the date against 27.11.2019 till the date of issuance of the demand draft @ 6%.
Once the refund application had been processed and or order passed, which has attained finality, the respondents cannot escape the plain effect of the same. They also cannot escape the liability of interest that arises on noncompliance of the same.
Section 54 of the CGST Act, 2017 — Refund —–The applicant sought directions to the respondent to refund Rs. 1,28,50,535/- that became due to the petitioner under the order dated 06.01.2020. That amount of refund relates to the month July, 2019. He further prayed for award of interest. The court observed that there is no dispute to the fact that an amount of Rs. 1,28,50,535/- is refundable to the petitioner for the month of July, 2019. The application for refund was filed by the petitioner manually, on 27.09.2019 yet the same was not processed and the refund was not directed to be paid within a period of sixty days therefrom.
Held that:- The Hon’ble High Court directed that the Respondent shall refund the entire amount of Rs. 1,28,50,535/- together with interest from the date against 27.11.2019 till the date of issuance of the demand draft @ 6%.