Msd Wellcome Trust Hilleman Laboratories Private Limited vs. Government Of Nct Of Delhi & Ors.
Held
The Court noted the statement made by the respondents' counsel that refund orders for periods between July 2018 and March 2022 had been issued, and the refund for the remaining period (April 2018 to May 2018) would be processed shortly. The Court was informed that the petitioner's claim for interest on the delayed refunds had not yet been considered. The respondents assured the Court that the concerned officer would process this claim in accordance with law and, if denied, would pass a speaking order detailing the reasons. The Court accepted this statement and directed the respondents to process the refund for April 2018 to May 2018 and to consider the petitioner's claim for interest on delayed refunds, referencing the Court's judgment in Consortium of Sudhir Power Projects Ltd. and Sudhir Gensets Ltd. v. Commissioner of Delhi Goods and Services Tax. If interest is denied, a speaking order must be passed within four weeks. All parties' rights and contentions are reserved.
Facts
The petitioner, MSD Wellcome Trust Hilleman Laboratories Private Limited, filed a writ petition before the Delhi High Court challenging the delay in processing its GST refund claims. The respondents, Government of NCT of Delhi & Ors., submitted a chart indicating that refund orders for periods between July 2018 and March 2022 had been issued. They further stated that the refund for the remaining period, April 2018 to May 2018, would also be processed shortly. Crucially, the respondents acknowledged that while refunds were processed, the petitioner's claim for interest on the delayed refunds had not been considered. They assured the Court that the concerned officer would process this claim in accordance with law, passing a speaking order if the interest was denied.
Key Issues
1. Whether the petitioner is entitled to interest on the delayed GST refunds for the periods July 2018 to March 2022 and April 2018 to May 2018, and if so, what is the applicable legal framework governing such interest claims under the GST regime? The petitioner's primary contention, implied by the filing of the writ petition and the subsequent statements, is that they are entitled to interest on the delayed refund of GST amounts. The respondents, while not disputing the delay in processing the interest claim, stated that the concerned officer would process the petitioner's claim for interest in accordance with law. They further indicated that if the claim for interest were to be denied, a speaking order would be passed. The respondents relied on the principle of processing claims in accordance with law and the necessity of a speaking order for denial. The Court's decision hinges on the legal entitlement to interest on delayed refunds and the procedural requirements for its grant or denial.
Sections Cited
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Cause title — parties, addresses and appearances
O R D E R % 12.04.2023
At the outset, Mr. Satyakam, learned counsel appearing for the respondents, handed over a chart, which indicates that the refund orders (five in number) have been issued for refund of the amount dues in respect of periods between July, 2018 to March, 2022. He submits that the relevant order for the remaining period from April, 2018 to May, 2018 would also be processed shortly.
He also states that although the refund has been processed, the petitioner’s claim for interest has not been considered. He submits that the concerned officer shall also process the petitioner’s claim for interest in accordance with law and if the same is required to be denied, it shall pass a speaking order setting out the reason for doing so.
He requests that the p
The judgment continues below.
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