Delayed GST Refund Interest Claim Must First Approach Authority: Himachal Pradesh HC

Paramount Agrotech Food Pvt. Ltd Vs State of Himachal Pradesh And Others (Himachal Pradesh High Court)

Summary: Himachal Pradesh High Court disposed of a writ petition filed by M/s Paramount Agrotech Food (P) Ltd seeking release of refund of Rs.7,77,375 along with interest pursuant to an appellate order dated 21.11.2025. The petitioner also sought interest in terms of Section 56 under the HPGST/CGST/IGST Act, 2017.

The petitioner submitted that, in terms of the appellate order passed in its favour, it was entitled to release of the refund amount along with interest, which according to it was due from the year 2023. The State, however, submitted that after the appeal was decided on 21.11.2025, the Department acted expeditiously from the date on which the petitioner filed its refund application and, therefore, no interest was payable.

The High Court observed that Sections 54 and 56 of the GST Act, 2017 relate respectively to refund of tax and interest on delayed refund. It held that the issue of interest on the purported delayed refund had first to be raised before the authority envisaged under the statute. Only after exhausting the statutory remedies, if the party remained dissatisfied or aggrieved, could it invoke the High Court’s jurisdiction under Article 226 of the Constitution of India under the “finality clause.”