Synchron Intelnational Service Private limited and another Vs Assistant Commissioner (ST) (Telangana High Court)
Summary: The Telangana High Court disposed of a batch of writ petitions filed by Synchron Intelnational Service Private Limited and another concerning claims for interest on GST refunds for the period July 2018 to March 2021. The principal refund amounts had already been refunded in respect of the relevant tax periods, either by the Refund Sanctioning Authority or pursuant to orders of the appellate authority. The petitioners subsequently claimed interest under Section 56 of the Central Goods and Services Tax Act, 2017 (CGST Act), stating that the refunds had been delayed. The interest claims had remained pending before the Proper Officer since 03.06.2025.
The petitioners approached the High Court after Deficiency Memos were issued in relation to their refund applications, including a third Deficiency Memo which, according to the petitioners, did not contain particulars. Their counsel submitted that once the refund had been sanctioned, interest under Section 56 would follow for the period of delay beyond 60 days from the date of the first refund application. It was also contended that Section 16(2)(c) of the CGST Act could not be invoked after the principal refund had already been sanctioned and paid, and that there could be no question of passing the interest component on to an end consumer.
