Alex Tour And Travel Private Limited vs. Deputy Commissioner, CGST, Uttam Nagar Division

Facts

The petitioner, Alex Tour and Travel Private Limited, filed a writ petition challenging an order dated December 29, 2023, passed by the Additional Commissioner. This order had rejected the petitioner's request for interest on a delayed refund for the tax period 2018-19. The respondent, Deputy Commissioner, CGST, Uttam Nagar Division, informed the Court that following the notice in the proceedings, the matter was re-examined. Consequently, interest for the period 2018-19 and a refund for the tax period 2019-20 were sanctioned. A pay order for Rs. 17,70,132/- dated April 2, 2024, and a cheque dated April 2, 2024, were issued and presented to the Court.

Held

The Court noted the submission by the learned counsel for the respondent that pursuant to the issuance of notice in the present proceedings, the matter was re-examined. The respondent confirmed that interest for the tax period 2018-19, which was the subject of the impugned order, has been duly sanctioned. Furthermore, a refund for the tax period 2019-20 has also been sanctioned. The interest has been computed, and a pay order in the sum of Rs. 17,70,132/- dated April 2, 2024, along with a cheque of the same date, has been issued. The learned counsel for the petitioner stated that since the grievance has been redressed, they do not wish to press the petition further. Consequently, the Court dismissed the petition as withdrawn.

Key Issues

1. Whether the petitioner is entitled to interest on the delayed refund for the tax period 2018-19, as per the relevant provisions of the CGST Act and Rules. The petitioner contended that they were entitled to interest due to the delay in the sanction and disbursement of their refund. The respondent, while initially passing an order rejecting the request, later submitted that the matter was re-examined and interest has been sanctioned. No specific arguments were recorded for the respondent's initial rejection, but their subsequent submission indicated a change in stance following the court proceedings. The respondent also stated that refund for the tax period 2019-20 was also sanctioned, and a pay order and cheque for a total sum of Rs. 17,70,132/- were issued.