Blue Evolution Trading Private Limited vs. Commissioner Delhi GST & Ors.

Facts

The writ petitioner, Blue Evolution Trading Private Limited, has approached the Delhi High Court with a grievance regarding the respondents' failure to grant interest on a refund that was sanctioned. The refund order is placed on record as Annexure P-3. The respondents, represented by Ms. Vaishali Gupta, have stated that they will examine the claim for statutory interest on the sanctioned refund. This examination will be subject to due verification of all facts and contentions on merits, which are to be kept open. A reasoned and speaking order is to be passed within three weeks from the date of the order.

Held

The Court recorded the statement made by the learned counsel for the respondents that the claim for statutory interest on the sanctioned refund shall be duly examined. The respondents are to pass a reasoned and speaking order in respect thereof within a period of three weeks from the date of the order. The Court accepted this statement and disposed of the petition on these terms. All rights and contentions of the respective parties on merits have been expressly kept open. The Court did not make any finding on the merits of the petitioner's claim for interest, nor did it decide the legal question of entitlement. The ratio decidendi is that when the revenue undertakes to examine a claim for statutory interest on a refund within a stipulated time, the High Court may dispose of the writ petition on that basis, keeping all contentions open.

Key Issues

1. Whether the petitioner is entitled to statutory interest on the refund sanctioned in their favour, as per the relevant provisions of the GST law? The petitioner's sole grievance is the non-payment of interest on a sanctioned refund. The petitioner argues that they are legally entitled to interest on the refund amount, as per the provisions of the Goods and Services Tax (GST) Act and Rules. The respondents, while not directly arguing against the entitlement to interest on merits at this stage, have undertaken to examine the claim. They have stated that subject to due verification of facts and contentions on merits being kept open, the claim for statutory interest shall be examined, and a reasoned order passed. No specific provisions or precedents were cited by either party in the brief proceedings recorded.