Anita Agarwal Vs Union of India (Bombay High Court)
Bombay High Court held that interest on delayed refund is payable as per section 56 of the Central Goods and Services Tax Act (CGST Act) and the period for grant of interest would begin on expiry of 60 days from the date of the shipping bill.
Facts- The Petitioner is an exporter and supplier of Ethyl Alcohol Liquid Packaging Film, Iodized salt, etc. On export of the goods, the Petitioner makes payment of Integrated Goods and Services Tax and claims the refund of same based on shipping bills as per the provisions of Section 16(3) of IGST Act r.w.s. 54 of CGST Act and Rule 96 of CGST Rules.
During the period August 2018 to July 2019, the Petitioner filed various shipping bills, which are considered as refund applications and claimed a refund of IGST of Rs.3.21 crore. However, the refund was granted only in August 2020.
The Petitioner was informed that the Petitioner’s name was flagged on the “risky exporters list” and, therefore, there was a delay on the part of the Respondents in granting the refund. The said red flag was removed on receipt of NOC from the Risk Management Centre for Customs on 3 August 2020, and thereafter, the refund was granted.
