M/S. South INDIA Krishna Oil And Fats PVT LTD vs. The Assistant Commissioner Of GST - Central Tax Central Excise
Held
The Court held that while the appellant had received a refund of input tax credit, their claim for interest on this refund could not be rejected solely because the levy and collection were declared unconstitutional. However, the Court also noted that the appellant possessed an efficacious alternative statutory remedy by way of an appeal against the impugned order to the competent appellate authority. In light of the availability of this alternative remedy, the Court found no reason to entertain the writ appeal. The appeal was dismissed, but the appellant was granted liberty to file an appeal before the statutory authority, with the time spent in writ proceedings to be excluded for the purpose of limitation. The petitioner was also exempted from paying interest on the refund.
Facts
The appellant, M/s. South India Krishna Oil And Fats Pvt Ltd, filed a writ petition challenging an order dated 11.01.2024, bearing No. 01/2024-GST Refund, passed by the Assistant Commissioner of GST - Central Tax. The learned Single Judge dismissed the writ petition on 22.08.2024. The appellant then filed the present writ appeal. The appellant had received a refund of input tax credit. The dispute centers on the appellant's claim for interest on this refund.
Key Issues
1. Whether the appellant is entitled to interest on the refund of input tax credit, considering the Supreme Court's decision in Union of India Vs. Tata Chemicals Ltd, which held that the obligation to refund an amount collected without legal authority carries a right to interest? Petitioner's Contention: The appellant argued that they are entitled to interest on the refund from the date their entitlement arose, citing the Supreme Court's decision in Union of India Vs. Tata Chemicals Ltd. Respondent's Contention: The respondent contended that the appellant has an efficacious alternative statutory remedy by way of appeal against the order passed by the competent authority and that the writ petition was filed instead of availing this remedy, making the appeal devoid of merit.
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 09-10-2026 CORAM THE HON'BLE MR JUSTICE P.VELMURUGAN AND THE HON'BLE MR JUSTICE K.K. RAMAKRISHNAN CNR:{HCMD010197512026} M/s. South India Krishna Oil And Fats Pvt Ltd Represented by its Manager (Taxation)
Mr. Vikas Rathor RS 280, Semangalam Post, Via Adiyakkamangalam, Thiruvarur -611101. .. Appellant/Petitioner Vs The Assistant Commissioner of GST - Central Tax Central Excise, Thanjavur Division, Ponnagar Medical College Road, Thanjavur -613007. ..Respondent/Respondent PRAYER: Writ Appeal filed under Clause 15 of Letters Patent, praying to prefer this Memorandum of Grounds of Writ Appeal against the order made in W.P. No. 11645 of 2024 passed by this Court dated 22.08.2024.
For Appellant : Mr.P.Purushotham For Respondent : Mr.R.Gowrishankar Senior Standing Counsel __________ https://www.mhc.tn.gov.in/judis JUDGMENT (Judgment of the Court was delivered by P.Velmurugan J.)
The appellant, who is the petitioner herein, filed a writ petition before this Court challenging the impugned order dated 11.01.2024, bearing No. 01/2024-GST Refund, pass
The judgment continues below.
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