BANSAL INTERNATIONAL Vs. COMMISSIONER OF DGST

JUDGEMENT

(1.) The petitioner has filed the present petition, inter alia, impugning an order dtd. 11/7/2023 (hereafter 'the impugned order') passed by the Additional Commissioner, Department of Trade and Taxes (hereafter 'the Adjudicating Authority'), whereby the petitioner's claim for interest of Rs.13,12,761.00 calculated at the rate of 9% per annum, on the refund of GST already granted, was rejected. The Adjudicating Authority referred to Sec. 56 of the Delhi Goods and Services Tax Act, 2017 (hereafter 'DGST Act') and had held that in terms of the proviso to Sec. 56 of the DGST Act, interest was payable only if the refund was not made within sixty days from the receipt of the application filed pursuant to the order passed by the Appellate Authority. Since in the present case, the refund was processed within the period of sixty days from the date of such application, no interest was payable under Sec. 56 of the DGST Act.

(2.) According to the petitioner, the Adjudicating Authority has misinterpreted the provisions of Sec. 56 of the DGST Act. The petitioner claims that he is entitled to interest for the period immediately after the expiry of sixty days from the date of the first application for a refund and not after sixty days from the application filed after succeeding in his claim for refund before the Appellate Authority.

(3.) In view of the above, the principal controversy to be addressed is whether the period for which the interest is payable under Sec. 56 of the DGST Act - which is similarly worded as Sec. 56 of the Central Goods and Services Tax Act, 2017 (hereafter 'the CGST Act') -commences from the date immediately after expiry of sixty days from the receipt of an application for refund or from a later date, in case the refund is initially denied but subsequently allowed by the Appellate Authority, Appellate Tribunal, or a court.