Department cannot deny interest on refund once refund clam is sanctioned

Rosy Blue India Private Limited vs. Union of India (Bombay High Court) The Petitioner challenged non-sanction of refund of service tax paid on export of services. The Show Cause Notice proposing denial of refund was challenged. However, during the pendency, refund of principal was granted. The interest on delayed refund from 2010-2011 till 2022 was not granted on the ground that complete set of documents were not submitted by the petitioner. Hence, there is no delay. The Hon’ble High Court of Bombay held that interest has to be granted after expiry of 3 months from the date of application. T...