Commissioner Of CGST And Cx vs. M/S Tengapani Tea Estate
Facts
The appeals before the Gauhati High Court involved the Union of India and other revenue authorities against various assessees, including M/s Pan Parag India Ltd., M/s Luit Developer Private Limited, M/s Jutlibari Tea Estate, M/s Tengapani Tea Estate, M/s Betjan Tea Estate, and M/s GAIL (India) Limited. The core issue revolved around the payment of interest to assessees on delayed refunds of exemptions. The Revenue contended that the question of law was pending before the Supreme Court in SLP(C) No. 016322/2018. One of the respondents, M/s Pan Parag India Ltd., pointed out that a similar appeal (WA No. 160/2021) had been disposed of by the High Court, subject to the outcome of the aforementioned SLP.
Held
The Court directed the appellant Department to make payment of the interest on delayed refund to the respondent assessee within a period of two months from the date of the order. However, this payment was made conditional upon the assessee furnishing an undertaking. The undertaking would stipulate that if the Revenue were to succeed in the pending SLP before the Supreme Court (SLP(C) No. 016322/2018), the interest amount paid under the High Court's order would be reimbursed to the Department. The appeals were accordingly disposed of with these directions. The Court did not expressly leave any issue undecided, but the final determination of the assessee's entitlement to interest was deferred pending the Supreme Court's decision.
Key Issues
1. Whether interest is payable to an assessee on delayed refund of exemptions, as per the relevant provisions of the GST law and principles of natural justice. The Revenue argued that the question of law regarding the payment of interest on delayed refunds of exemptions is pending consideration before the Hon'ble Supreme Court in SLP(C) No. 016322/2018, and therefore, the present appeals should be decided in light of that pending decision. The assessees, represented by their respective counsel, contended that they are entitled to interest on delayed refunds. In one instance, it was noted that an identical appeal had been disposed of by the High Court, subject to the outcome of the Supreme Court SLP, implying an expectation of payment pending the final decision.
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Page No.# 1/4 GAHC010204102019
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WA/102/2022 UNION OF INDIA AND ANR REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF BANKING AND REVENUE, HAVING ITS OFFICE AT NORTH BLOCK, NEW DELHI-110011 2: THE ASSISTANT COMMISSIONER CENTRAL TAX CENTRAL GST DIVISION JORHAT STATION GODOWN ROAD JORHAT ASSAM PI VERSUS M/S PAN PARAG INDIA LTD. (FORMERLY KOTHARI PRODUCTS LIMITED), A COMPANY DULY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGD. OFFICE AT PAN PARAG HOUSE, 24/19, THE MALL, KANPUR- 208001 HAVING ONE OF ITS UNIT AT A-1 TO A-4, INDUSTRIAL ESTATE, CINNAMARA, JORHAT- 785008 Linked Case : C.Ex.App./4/2022 COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX AND CENTRAL EXCISE . DIBRUGARH MILAN NAGAR LANE F PO C.R BUILDING DIBRUGARH ASSAM 786003 VERSUS
Page No.# 2/4 M/S LUIT DEVELOPER PRIVATE LIMITED . R.K B PATH DIST DIBRUGARH L ASSAM 786001 Linked Case : C.Ex.App./3/2022 COMMISSIONER OF CGST AND CX PO MAKUM DIST TINSUKIA ASSAM 786170 VERSUS M/S JUTLIBARI TEA ESTATE PO NAOHOLIA DIST TINSUKIA ASSAM 786191
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