Order Date - 01 March 2024

Parties: Raghav Ventures Vs Commissioner of Delhi Goods & Services Tax

Facts -

• The Petitioner, Raghav Ventures, filed an application for refund of IGST paid for the tax period December 2022, February 2023, March 2023 and May 2023 and was sanctioned on 04.12.2023 but without interest.
• The Department has submitted that vide FORM-GST-RFD-01, petitioner has only claimed the integrated tax and not the interest on the same and therefore he is not entitled for the grant of interest on the tax  amount.

Issue -

• Whether the petitioner is entitled to interest on refund?

Order -

• The Single Bench of Hon’ble High Court observed that payment of interest under Section 56 of the Act being statutory is automatically payable without any claim, in case the refund is not made within 60 days from the date of receipt of the  application. Payment of interest does not depend on the claim made by petitioner and therefore cannot be denied on the ground of waiver on the claim of interest in FORM GST-RFD-01.
• Thus, even though the petitioner may not have claimed interest in his refund applications, his claim of interest cannot be denied under Section 56 of the Act as the same is  mandatory and payable automatically in terms of the provisions of the Act.
• Hence it was held that that petitioner is entitled to statutory interest at the rate of 6% starting from the date immediately after the expiry of sixty days from the date of receipt of  refund applications till the date on which the refund is credited to the bank account of the petitioner.