Gameloft Software Private Limited Vs Assistant Commissioner of Central Tax (Delhi High Court)
Delhi High Court in Gameloft Software Private Limited vs Assistant Commissioner of Central Tax addressed the issue of delayed processing of GST refund applications and the statutory timelines governing deficiency memos and interest on delayed refunds.
The petitioner, Gameloft Software Pvt. Ltd., sought the expeditious disposal of its refund applications under Articles 226 and 227 of the Constitution. The company claimed to have paid excess Integrated Goods and Services Tax (IGST) amounting to ₹1,87,84,018 during April 2019–June 2020. Refund applications were filed in April 2022 but were rejected through orders dated 6 and 7 July 2022 citing certain deficiencies. Revised refund applications were filed on 30 and 31 March 2023. However, no deficiency memo was issued within the legally prescribed 15-day period.
Subsequently, on 11 April 2023, the department issued a deficiency memo merely stating that “supporting documents were incomplete.” Despite several representations by the petitioner, the refund applications remained pending.
The Court referred to the statutory framework under Sections 54 and 56 of the Central Goods and Services Tax Act, 2017 (CGST Act), which prescribe the process and timelines for handling refund applications and payment of interest on delayed refunds. Section 54 governs the filing, examination, and sanction of refund claims. Under Section 54(7), the proper officer must issue an order within 60 days of receipt of a complete application. Section 56 provides that if a refund is not made within 60 days, the taxpayer is entitled to interest at a rate not exceeding 6% per annum. The proviso to Section 56 further allows a higher interest rate, not exceeding 9% per annum, where refunds arise pursuant to orders of appellate or judicial authorities.
