Payment of Interest on delayed Refunds

Case of Apar Industries Vs UoI (Bombay High Court)

Facts

Writ Petition was filed by the Petitioner being aggrieved by the non-payment of interest on the amount of Rs.5.52 crores of refund already granted as well as refund of balance amount along with interest. Petitioner had filed a refund of Rs.52.97 crores along with interest thereon in respect of tax paid on exported goods under section 16 of the IGST Act.

Contention of the Revenue that there is an invoice mismatch/error which resulted in delay in refunding amount of Rs.52.52 crores and hence no interest is payable.

The High Court held as under—

Circulars and FAQs, inter alia, deal with grant of refund in spite of Invoices mismatch/ error, as indicated by SB005 but do not deal with grant of interest even for the period when there is Invoice mismatch/ error - 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–

As this exercise would be best done by the adjudicating authorities under the Act after hearing the parties, petition is not entertained–

Petitioner advised to make a representation to the adjudicating authority who would consider the same and after hearing the Petitioner, pass a speaking order, preferably within a period of twelve weeks from receipt of the Petitioner's representation.