Lupin Limited Vs Union of India (Bombay High Court)
Bombay High Court held that combine reading of section 56 and 54(1) of the CGST Act states that interest @9% is payable when amount is not refunded within 60 days from the date of the order passed by the First Authority.
Facts- The petitioner, a company having its registered office in Verna, IDC, Salcete, South Goa, is aggrieved by the impugned order in appeal dated 07.03.2024 passed by the respondent no.2, thereby rejecting the appeal and upholding the orders in original dated 10.07.2023 and 07.2023.
Notably, the petitioner filed two distinct refund applications in respect of the two exports u/s. 54(1) of the CGST Act. The applications claimed refund of ITC on export of goods and services without payment of tax and claimed two distinct amounts as set out therein. The two orders in original dated 30.06.2022 and 10.10.2022, granted part refund claimed under the provisions of Section 54 of the CGST Act 2017, read with Rule 89 of the Rules of 2017.
This resulted in two distinct appeals being filed before the Appellate Authority, i.e. the Commissioner (Appeals), CGST and Customs Goa, as the Assistant Commissioner had allowed the refund claim only in part. The Appellate Authority, by two distinct orders, modified the impugned order and sanctioned the eligible amount of refund by re-determining it as per the claim of the petitioner.
