Recyclib Private Limited Vs Commissioner of Delhi Goods And Services Tax & Ors. (Delhi High Court)
The Delhi High Court disposed of a writ petition concerning interest on a GST refund. The petitioner, engaged in exporting unwrought cobalt powder used in scrap batteries, had sought a refund of Rs.31,44,891.77 for tax paid on exported goods through an application dated 22.01.2022. The refund was rejected on 22.04.2024, but the Appellate Authority allowed the petitioner’s appeal on 06.01.2026 and set aside the rejection.
Following the appellate order, the petitioner applied for refund on 27.03.2026, and the refund amount was released. The petitioner then claimed interest under Section 56 of the CGST Act. The respondents submitted that the petitioner should approach the Department.
The Court noted that Section 56 provides for interest where a refund under Section 54(5) is not made within 60 days, including refunds arising from final orders of adjudicating or appellate authorities, tribunals or courts. The Court permitted the petitioner to approach the competent authority for interest under Section 56 and directed that any such application be considered and decided in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The Petitioner claims to be engaged in the business of export of unwrought cobalt powder used in scrap batteries.
2. The Petitioner had filed an application dated 22.01.2022 seeking refund of Rs.31,44,891.77/- in respect of tax paid on export of goods. The said application was rejected on 22.04.2024. The Petitioner preferred an Appeal against the rejection order, which came to be allowed by the Appellate Authority vide order dated 06.01.2026, setting aside the refund rejection order dated 22.04.2024.
3. Pursuant to the aforesaid order, the Petitioner filed an application dated 27.03.2026 and the refund amount has since been released. The Petitioner claims pendent lite interest in terms of Section 56 of the Central Goods and Services Tax, 2017 (‘CGST Act’).
4. Learned counsel representing the Respondents submits that the Petitioner is required to approach the Department in this regard.
5. Section 56 of the CGST Act provides for payment of interest where the tax ordered to be refunded under Section 54(5) is not refunded within sixty days from the date of receipt of the application for refund.
6. The proviso thereto further provides for payment of interest where the claim for refund arises pursuant to an order passed by an Adjudicating Authority, Appellate Authority, Appellate Tribunal or Court, which has attained finality, and the refund is not made within sixty days from the date of receipt of the application filed consequent to such order.
7. In view of the aforesaid position, the Petitioner may approach the competent authority seeking interest in terms of Section 56 of the CGST Act. If such an application is filed, the same shall be considered and decided in accordance with law.
8. With these observations, the present Writ Petition is disposed of.
