Vergo Pharma Research Laboratories PVT LTD., Represented Its Director Mr. Kashyap Prasad Keni vs. Deputy Commissioner Of State Tax And 3 Ors

Facts

The Petitioner, Vergo Pharma Research Laboratories Pvt Ltd., approached the High Court of Bombay at Goa seeking clarification on which authority was responsible for sanctioning a refund and considering an application for interest on delayed refund. The core issue was the confusion between the Department of Customs and the State Tax Department. The Court had previously sought clarification from the Chief Secretary of the State of Goa regarding this matter. A clarification was subsequently received from the Chief Secretary, dated 15.04.2025, which identified the Deputy Commissioner of State Tax, Panaji Ward, as the Refund Sanctioning Authority (RSA) for registered taxable persons under their jurisdiction. The Chief Secretary also referred to a circular issued by the Government of India, Ministry of Finance, Department of Revenue, outlining the procedure.

Held

The Court held that, based on the clarification received from the Chief Secretary of the State of Goa, the Deputy Commissioner of State Tax, Panaji Ward, is indeed the Refund Sanctioning Authority (RSA) for the Petitioner. Consequently, the Court directed the Deputy Commissioner of State Tax, Panaji Ward (Respondent No. 1), to consider the Petitioner's application for interest on delayed refund. This consideration must be in compliance with Section 56 of the CGST Act, 2017. The Court further mandated that the Deputy Commissioner decide the said application within a period of eight weeks from the date of the order, following the procedure outlined in the circular dated 18.11.2019 issued by the Government of India. The Court expressed hope that such clarification would prevent future litigation from similarly situated persons. The Writ Petition and the pending Miscellaneous Civil Application were disposed of accordingly.

Key Issues

1. Whether the Deputy Commissioner of State Tax, Panaji Ward, is the appropriate Refund Sanctioning Authority (RSA) for the Petitioner, as per the clarification sought by the Court and the relevant circulars. 2. Whether the Deputy Commissioner of State Tax, Panaji Ward, is obligated to consider the Petitioner's application for interest on delayed refund in compliance with Section 56 of the CGST Act, 2017. Petitioner's Contentions: The Petitioner sought clarity on the responsible authority for refund sanctioning and the process for claiming interest on delayed refunds. They relied on the expectation that the Court would receive a definitive clarification from the Chief Secretary. Revenue/State's Contentions: The Revenue/State, through the Additional Government Advocate and Senior Standing Counsel, participated in the proceedings. Following the clarification from the Chief Secretary, the State's position, as articulated by the Chief Secretary's communication, was that the Deputy Commissioner of State Tax, Panaji Ward, is the designated authority.