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The respondents cannot be allowed to take advantage of their own wrong so as to deny the payment of interest to the petitioner on delayed refund. Thus, the petitioner is entitled for interest under Section 56 of the Act, 2017.

Refund— Section 56 of CGST Act— The petitioner is a registered dealer dealing in tobaco. While certain goods sold by him were being transported, it was intercepted by the Assistant Commissioner, Jhansi and an order under Section 129(3) of the Uttar Pradesh Goods and Service Tax Act, 2017 was passed demanding tax and penalty of equal amount, for release of goods.

Although the petitioner is a registered dealer and all particulars relating to him were well mentioned in the accompanying invoice and other documents, yet the aforesaid Assistant Commissioner, Mobile Squad Unit created at its own a temporary ID and released the goods on deposit of the aforesaid demanded amount by the petitioner by an account payee bank draft.

That facts of the case eaves no manner of doubt that the respondent mischievously created temporary I.D. for depositing of the sum even though he was well aware of the fact that the petitioner is a registered dealer of Gujrat State and the provisions of IGST Act are applicable and all details relating to petitioner were available with him and there was no need to create a temporary I.D.

The petitioner was entitled for refund in terms of the order for refund passed by the First Appellate Authority. Accordingly, refund has been sanctioned by respondent.

Now the question that remains for consideration is as to whether under the facts and circumstances, the petitioner is entitled for interest on the amount of Rs.4,70,400/-, was liable to be refunded in terms of the order of the First Appellate Authority dated 30.06.2018 but it was refunded on 04.04.2022.

When the appellate authority vide order dated 30.06.2018 directed for refund and the order was communicated to the respondents by the petitioner vide letter dated 09.07.2018, then, the respondents were bound to refund the amount along with interest under Section 56 of the CGST/ U.P. GST Act, 2017 but on one hand, they arbitrarily withheld the refund of the petitioner for more than 33 months and on the other hand, they again arbitrarily acted and have not granted interest to the petitioner on the delayed refund of the amount in question.

Held that— The petitioner is entitled for interest under Section 56 of the CGST Act, 2017.

The respondents cannot be allowed to take advantage of their own wrong so as to deny the payment of interest to the petitioner on delayed refund. Thus, the petitioner is entitled for interest under Section 56 of the Act, 2017.

The petitioner was entitled for refund in terms of the order for refund passed by the First Appellate Authority. Accordingly, refund has been sanctioned by respondent.

Held that— The petitioner is entitled for interest under Section 56 of the CGST Act, 2017.