Pinnacle Life Science PVT. LTD. vs. Union Of INDIA And Ors

Held

The Court held that the Petitioner is entitled to interest on the delayed IGST refund. The Respondent's counsel acknowledged that Section 56 of the CGST Act provides for interest on delayed refunds. Based on this concession and the statutory provision, the Court directed the Respondent to calculate and pay the interest due to the Petitioner on the amount refunded late. The reasoning was that the law itself mandates payment of interest in such circumstances, and the Respondent's counsel did not contest this. The operative direction was for the Respondent to pay the calculated interest within four weeks. No other issues were expressly left undecided.

Facts

The Petitioner, Pinnacle Life Science Pvt. Ltd., filed a writ petition challenging the 'Risky Exporter' tag imposed on it and the subsequent withholding of its IGST refund. Subsequent to the filing of the petition, the 'Risky Exporter' tag was removed, and the Petitioner received the IGST refund. However, the Petitioner contended that no interest was paid on the delayed refund amount. The dispute, therefore, narrowed down to the entitlement of the Petitioner to receive interest on the refund.

Key Issues

1. Whether the Petitioner is entitled to interest on the delayed IGST refund, as per the provisions of the CGST Act? Petitioner's Contention: The Petitioner argued that it is entitled to interest on the refund amount that was delayed. The Petitioner relied on the general principle that interest is payable on delayed refunds. Revenue's Contention: The Respondent, Union of India and Ors., through their counsel, conceded that the law provides for interest on delayed refunds under Section 56 of the CGST Act. They did not dispute the Petitioner's entitlement to interest.