Order Date – 06 January 2023

Parties: SBI CARDS & PAYMENT SERVICES LIMITED vs. UNION OF INDIA & OTHERS

Facts –

• The Petitioner, SBI CARDS & PAYMENT SERVICES LIMITED, wrongly paid CGST and SGST amounting to Rs.108.41 crores (approx.) and applied for a refund. But the concerned authorities rejected the same.
• Later, the court directed to refund the amount of Rs.108 crores (approx.) which was deposited by the petitioner along with applicable interest within a period of one month.
• But the respondents rejected the claim of interest on Rs.108.41 crores, hence the present petition has been filed.

Issue ­–

• Whether the Petitioner is eligible for interest?

Order –

• The Court observed that the additional amount of tax which was paid by the petitioner, was paid on the requirement of the respondents only. It was specifically observed that the said money had been lying with the respondents for 2½ years.
• The arguments raised by the petitioner are supported by the judgment of the Hon’ble Supreme Court in Ranbaxy Laboratories Ltd. Vs. Union of India and others, and the decision adopted by this Court in M/s Dee Kay Exports Vs. Union of India and others, where this Court allowed the writ petition challenging the rejection of interest and holding that the respondents are liable to pay interest.
• The Court stated that the petitioner was entitled to a refund as well as an interest amount. Unfortunately, this has not been done and the respondents have no justification for withholding the interest amount, which is a negligent act.