Interest on delayed refund—Section 16 of IGST Act, 2017—Tax paid in respect of exported goods—Interest on delayed refund—In the instant case, petitioner seeks a refund of tax with interest.

Held that— The Respondents state that there is an Invoices mismatch in respect of the refund sought. Thus, leading to delay in passing the refund. This is disputed by the Petitioner. Besides, the Circulars and FAQ mentioned, inter alia, deal with grant of refund in spite of Invoices mismatch/ error, as indicated by SB005. The above Circular/ FAQ do not deal with grant of interest even for the period when there Invoice mismatched/ error. Thus, the Circular/FAQ does not decide the issue, but would require deeper consideration.

The issue of grant of interest for delaying refund does requires factual determination as to the type of Invoices mismatch, who was responsible for the same and who, if any, and how, was the same corrected. This exercise would be best done by the adjudicating authorities under the Act after hearing the parties - petition allowed by way of remand. [APAR INDUSTRIES LIMITED VERSUS UNION OF INDIA & OTHERS] [BOMBAY HIGH COURT]