Petitioner | B.K.S. Motors (P) Ltd. |
Respondent | Commissioner Of Delhi Goods And Services Tax |
Decision by | Delhi High Court |
Date of order or Judgement | 20- May- 2022 |
Citation no. | 2022 (5) GSTPanacea 27 HC Delhi W.P.(C.) 7280/2022 |
Hon’ble Judge | Justice Rajiv Shakdher |
Decision | In Favour of Assessee |
Interest on Refund is Allowed-Whether interest on refund should have run from the expiry from the date when the return was furnished or from the date of order of refund ?
Interest on Refund-Facts of the Case
Interest on Refund is Allowed-The substantive prayers made in the writ petition is to direct the respondent to grant refund of Rs.10,91,642/- for the fourth quarter of 2016-17 along with interest on that refund in accordance with Section 42(1) of the Act.
Mr Satyakam has drawn attention to the documents filed in the instant case on behalf of the respondent/revenue, which show that a refund order dated 11.05.2022 has been passed in favour of the petitioner.
Argument Before Court
Interest on Refund is Allowed-Petitioner’s Contention
Interest on Refund is Allowed-The petitioner, however, contends that in terms of Section 38(3)(a)(ii) read with Section 42 of the DVAT Act, interest should have run from the expiry of two months from the date when the return was furnished.
What is not in dispute in this case is that the return was filed by the petitioner on 02.05.2017.
It is on account of this that there is a difference in the interest, as claimed by the petitioner and that which is approved by the respondents/revenue. According to the petitioner, it is entitled to Rs.3,18,161/- towards interest.
Interest on Refund is Allowed-Respondent’s Argument
Interest on Refund is Allowed-On the other hand, it was submitted on the behalf of the respondents that the principal amount of Rs.11,57,679/- has been approved for payment. Insofar as interest is concerned, the sum quantified is Rs.66,037/- .
As per respondent the assessment order in the petitioner’s case concerning financial year 2016-17 was passed on 16.03.2021 and, therefore, the calculation of interest has been triggered two months henceforth i.e., from 16.05.2021, as per the provisions of Section 42 of the Delhi Value Added Tax Act 2004.
Delhi High Court Held
Interest on Refund is Allowed-Therefore, as was the methodology adopted by another coordinate bench of this Court via order dated 27.02.2019, passed in W.P.(C.) No.13929/2018, titled Turbo Tapes Industries vs. Commissioner of Value Added Tax, and order dated 18.09.2017, passed in W.P.(C.) No.8290/2017, titled Dhanpati Packaging vs. Commissioner of Value Added Tax & Anr.
Delhi High Court is inclined to dispose of the present writ petition, with the caveat that the petitioner’s claim concerning the remaining interest would be processed and shall be paid.
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