Trade Notice No. 42

SGST High Court Cases

GST – Rule 97A - Claim of refund with interest, Refund application moved through physical mode - Since refund was not made, petitioner filed an application seeking refund – the order of refund was passed beyond period of sixty days - by virtue of Section 56 of the CGST Act, interest @ 6% from the date of expiry of 60 days contemplated under Section 54(7) of CGST Act till date of actual payment of refund also became due - Instant petition seeking direction to respondents to refund amount along with interest – HELD – the application for refund was filed by the petitioner manually, on 27.09.2019 yet the same was not processed and the refund was not paid within a period of sixty days - by way of a legal consequence arising from the plain language of the statute, the respondents have exposed themselves to interest liability @ 6% from the date 27.11.2019 onwards, on the amount of admitted refund – though the law did contemplate refund applications to be made and orders to be passed and also refund to be made through online mode, on account of the problems that arose upon the introduction of GST regime, Rule 97A of the Rules was introduced to permit filing of application manually – the Circular No.125/44/2019-GST prescribing online mode for refund applications does not override effect of law arising from Rule 97A of the CGST Rules - Since Circular itself has been issued after application filed by petitioner, same cannot be pressed into service by respondents - Once application has been processed and or order passed which has attained finality, respondents cannot escape liability of interest that arises on non-compliance of the same - Respondent shall refund entire amount together with interest – assessee writ petition is allowed

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