Interest from shipping bill date allowed in case of serious delay in effecting refunds

Akay Flavours & Aromatics (P.) Ltd. Vs CBIT & Customs (Kerala High Court)

In case of serious delay in effecting the refunds under GST Act, GST Authority to pay IGST refund alongwith interest from date of shipping bill after following due procedure.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

The prayers in the above W.P.(C.) are as follows :

(a) issue a writ of mandamus or any other appropriate writ order or direction, directing the respondents to include the corrected details of Exhibits P6 to P9 through Exhibits P11 and P12 in the EDI system to enable the petitioner to get its refund;

(b) issue a writ of mandamus or any other appropriate writ order or direction directing the respondents to refund the IGST paid with interest from the date of Exhibts P6 to P10 shipping bills forthwith;

(c) Issue any other appropriate writ order or direction as this Hon’ble Court deem fit and necessary in the facts and circumstances of the case ;

and

(d) award costs of these proceedings to the ” 

2. Heard Sri.John Varghese, learned counsel appearing for the petitioner and Sri.Thomas Mathew Nellimoottil, learned Central Government Counsel appearing for the respondents including the additional respondent 7.

3. Thomas Mathew Nellimoottil, learned Central Government Counsel appearing for respondents would now submit on the basis of instructions that the Addl. 7^th respondent (The Asst. Commissioner o/o the Assistant Commissioner of Central Tax & Central Excise, Perumbavoor Division, Thottumkal Road, Perumbavoor – 683542) has now furnished written instructions in his letter No.C.No.VIII/48/218/2019 CCO-V dated 08.01.2020  wherein  it  has been  interalia  stated that vide  the  said office  letter  dated  20.12.2019  Directorate  General  of  Systems and Data Management  vide  their  letter  F.No.IV(35)/02/2018  Systems  Pt.V.  dated 06.01.2020  has  clarified  that  since  the  party  (the  petitioner  herein)  has later  filed amendments in the GST returns with IGST amounts, the refunds can  be  processed  through  an  officer  interface  option,  which  is  already availed in ICES and that the reference has   also been made to the   board’s circular  to  the  Central  Board  of  Indirect  Taxes  and  Customs,  Circular No.08/2018-Customs  dated  23.03.2018  and  subsequent  ICES  Advisory No.22/2018 dated 24.05.2018 could be referred for further details on the procedures.

4. Further, it is stated therein that necessary action to sanction IGFT refunds in the instant case could be undertaken by the officers concerned through the office interface as detailed in the procedures provided by the Directorate General of Systems and Data

The abovesaid letter reads as follows :

“Kind attention is invited to this office letter of even number dated 20.12.2019 addressed to Directorate General of Systems and Data Management, New Delhi on the subject matter (copy enclosed).

2. In response to this office letter dated 20.12.2019, the Directorate General of Systems and Data Management, New Delhi vide their letter F No.IV(35)/02/2018 Systems Pt V dated 06.01.2020 clarified that, since the party has later filed amendments in the GST Returns with IGST amounts, the refunds can be processed through an officer interface option which is already available in ICES. In this regard kind attention is invited to Board’s Circular No.08/2018 Customs dated 23.03.2018 and subsequent ICES Advisory No.22/2018 dated 24.05.2018 may be referred to for further details on the procedures.

3. In view of the above, necessary action to sanction IGST refunds in the instant case could be undertaken by the concerned officers through the office interface as detailed in the enclosures provided by the Directorate General of Systems & Data

4. This is for information and further necessary action at your end, so that the facts can be presented before the Hon’ble High Court of Kerala on the next date of hearing (13.01.2020).

This is issued with the approval of Principal Chief Commissioner.”

 5. Accordingly, it is ordered the competent authority among the respondents 2 to 5 will take necessary steps to process the claim of the petitioner for refund in the light of Ext.P21 and after following the procedure mentioned in the abovesaid letter dated 08.2020 and should take necessary consequential steps for honoring the claim of the petitioner for refund, after affording reasonable opportunity of being heard to the petitioner, without much delay, within a period of 4 weeks from the date of production of certified copy of this judgment.

6. The counsel for the petitioner would submits that there is serious delay in effecting the refunds and that the petitioner is entitled for interest. After the abovesaid finalization as aforedirected, it will be open to the petitioner to submit representation before the competent authority among the respondents in the matter of his claim for interest if any and such claim   should also be later considered and decided by competent respondent official concerned within 4 weeks thereafter.

With these observations and directions, the above W.P.(C.) will stand finally disposed of.