Centrient Pharmaceuticals INDIA PVT LTD vs. Union Of INDIA And Ors

Held

The Court noted that the petitioner's counsel stated that the respondents had handed over a communication dated 18.07.2023 and a cheque for Rs. 22,39,823/- to the petitioner, remitting the principal amount. In light of this development, the petitioner's counsel stated that they did not press the instant writ petition. However, the petitioner sought liberty to take out appropriate proceedings in accordance with law to seek interest in terms of the order Annexure P/4. The Court disposed of the petition as not calling for further orders, granting the petitioner the liberty as prayed for. The issue of interest was expressly left to be pursued separately by the petitioner.

Facts

The petitioner, Centrient Pharmaceuticals India Pvt. Ltd., filed a writ petition seeking directions for the refund of approximately Rs. 22 lakhs, along with interest, as per a prior order dated 03.09.2019 (Annexure P/4) which had attained finality. The petitioner contended that the refund was being denied on the ground of not applying within one year. On 06.07.2023, this Court had directed the respondents to refund the amount before the next hearing and sought reasons for the delay and potential imposition of costs. On 19.07.2023, the petitioner's counsel was handed a communication dated 18.07.2023 from the Assistant Commissioner, Central Goods and Services Tax Division, Phagwara, along with a cheque for Rs. 22,39,823/- remitted to the petitioner. The petitioner, having received the principal amount, stated they did not press the writ petition but sought liberty to pursue interest.

Key Issues

1. Whether the respondents are liable to comply with the order of the Tribunal dated 03.09.2019 (Annexure P/4) by sanctioning the refund along with interest, despite the delay in processing the refund and the respondents' contention regarding the petitioner not applying within one year? (Question of law and fact) Petitioner's contention: The petitioner argued that the order of the Tribunal dated 03.09.2019 had attained finality, and therefore, the respondents were obligated to comply with it by sanctioning the refund with interest. The denial of refund on the ground of the petitioner not applying within one year was being challenged as unjustified given the finality of the Tribunal's order. Respondents' contention: The respondents, represented by the Union of India and Ors., initially sought time to obtain instructions regarding the delay and the imposition of costs. Subsequently, they remitted the principal refund amount.