Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Integrated Goods and Services Tax Act 2017 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Integrated Goods and Services Tax Act, 2017 – ss. 16 and 20 – Central Goods and Services Act, 2017 – ss. 54 and 56 – Interest on delayed refunds – Writ petitioners claimed that inaction on part of appellant leading to inordinate delay in granting refunds under IGST Act, was per se arbitrary and impacted the working capacity of the writ petitioners thereby reducing their ability to conduct business – There was delay ranging from 94 to 290 days in making refunds – Petitioners before the High Court claimed that appropriate compensation ought to be awarded to them along with the interest for delayed refunds – High Court granted simple interest at the rate of 9 % per annum on the delayed payments – Appeal before the Supreme Court – Whether in terms of relevant statutory provisions, the petitioners are entitled to interest on delayed refunds at rate of 6 % and not at the rate of 9 % per annum – Held : Wherever a statute specifies or regulates the interest, the interest will be payable in terms of the provisions of the Statute – Wherever a statute, is silent about the rate of interest and there is no express bar of payment of interest, any delay in paying the compensation or the amounts due, would attract award of interest at a reasonable rate on equitable grounds – In the present case, the relevant provision has prescribed rate of interest at 6 % where the case for refund is governed by the principle provision of s. 56 of the CGST Act – Since the delay in the instant case was in the range of 94 to 290 days, the matter has to be seen purely in the light of the concerned statutory provision – Present cases have not arisen from any order passed by an Adjudicating Authority or Appellate Authority or Appellate Tribunal or Court and the cases are strictly within the scope of the principal provision of Section 56 and not under the proviso thereof – Therefore, in terms of the principle part of s. 56 of the CGST Act, the interest would be awarded at the rate of 6 % – The award of interest at 9 % would be granted only if the matter was covered by the proviso to s. 56 – High Court was in error in awarding interest at the rate exceeding 6 % in the present matters. |
Judge | Honble Mr. Justice Uday Umesh Lalit |
Neutral Citation | 2022 INSC 430 |
Petitioner | Union Of India & Ors |
Respondent | M/s. Willowood Chemicals Pvt. Ltd. & Anr. |
SCR | [2022] 14 S.C.R. 1138 |
Judgement Date | 2022-04-19 |
Case Number | 2995 |
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