Bansal International vs. Gsto Ward-64 & Anr.
Facts
The petitioner, Bansal International, filed a writ petition before the Delhi High Court seeking interest on a refund claimed under Section 56 of the CGST Act. The petitioner sought interest at 6% on Rs. 4,27,487/- and at 9% on Rs. 58,35,055/-, calculated from the expiry of sixty days from the filing of their refund application until the actual date of payment. The refund application was filed on January 16, 2024. The respondents are GSTO Ward-64 and another authority. The core issue revolves around the petitioner's entitlement to interest on the delayed refund.
Held
The Court noted that the principal issue concerning the petitioner's claim for interest on the refund amount is covered by a previous decision of the same Court in Bansal International v. Commissioner of DGST and Another (Neutral Citation: 2023:DHC:8344-DB). Consequently, the Court directed the respondent (GSTO Ward-64) to decide the petitioner's refund application (GST RFD-01 dated 16.01.2024) in accordance with the aforesaid decision. The reasoning is that the present case is squarely covered by the precedent. The operative direction is to decide the refund application in terms of the cited judgment. No specific finding on the exact amount of interest or the rates was made by this Court in this order, as it remitted the decision to the respondent authority.
Key Issues
1. Whether the petitioner is entitled to interest on the refund amount under Section 56 of the CGST Act, and if so, at what rate and for what period? The petitioner argued that they are entitled to interest as per Section 56 of the CGST Act, specifically referencing the rates mentioned in their prayer (6% and 9%) from the expiry of sixty days of filing the refund application until actual payment. The respondents, represented by Mr. Rajeev Aggarwal, ASC, accepted notice. The judgment does not record specific arguments from the respondents regarding the entitlement to interest or the rates claimed by the petitioner, but rather directs the respondent to decide the application in accordance with a previous High Court decision.
Sections Cited
Section 56
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Cause title — parties, addresses and appearances
O R D E R % 15.07.2024
Issue notice.
Mr Aggarwal, learned counsel appearing for the respondents accepts notice.
The petitioner has filed the present petition, inter alia, praying as under:- “a) That this Hon’ble High Court be pleased to issue the refund U/s 56 of the CGST Act to the Petitioner @ 6% on an amount of Rs. 4,27,487/- from the expiry of sixty days of filing of the refund application, till the actual date of payment; b) That this Hon’ble High Court be pleased to issue the refund as per the first proviso to section 56 of the CGST Act to the Petitioner @ 9% on an amount of Rs.58,35,055/- from the expiry of sixty days of filing of the refund application, till the actual date of payment;”
It is stated that the principal issue involved in the present petition This is a digitally signed order. The authenticity of t
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