Commissioner Of CGST And Cx vs. M/S Betjan Tea Estate

Facts

The Revenue, represented by the Union of India and the Assistant Commissioner of Central Tax, has filed several appeals before the Gauhati High Court. The appeals involve a common question of law regarding the payment of interest to assessees on delayed refunds of exemptions. The Revenue's counsel stated that this issue is pending consideration before the Supreme Court in SLP(C) No. 016322/2018. The respondent 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, are represented by their respective counsels. One of the linked appeals, WA No. 160/2021, was previously 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 is conditional upon the assessee furnishing an undertaking. The undertaking must state that if the Revenue succeeds in the SLP (SLP(C) No. 016322/2018) pending before the Supreme Court, the interest amount paid under this order shall be reimbursed to the Department. The Court disposed of all the present appeals, WA No.102/2022 and linked C.Ex.App. Nos.1/2022, 2/2022, 3/2022, 4/2022 and 6/2022, in terms of this direction. The issue of whether interest is ultimately payable on delayed refunds of exemptions remains subject to the outcome of the Supreme Court SLP.

Key Issues

1. Whether interest is payable to an assessee on delayed refund of exemptions, as per the relevant provisions of the GST law. 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. Therefore, the present appeals should be decided in light of the outcome of that SLP. The Assessees, through their counsel, highlighted that an identical appeal (WA No. 160/2021) was disposed of by this Court on 01.09.2021, with the condition that the interest payable to the assessee would be subject to the outcome of the SLP pending before the Apex Court. This implies an expectation of payment pending the final decision.