Case Law Details
Flooratex Rubber & Plastics (P) Ltd. Vs Joint Commissioner (General) (Kerala High Court)
Introduction: In a recent judgment, the Kerala High Court directed interest on delayed GST refund to Flooratex Rubber & Plastics (P) Ltd., rejecting portions related to CGST and IGST. The court’s decision on this matter and its legal implications are explored in this article.
Detailed Analysis: Flooratex Rubber & Plastics (P) Ltd. had filed a writ petition challenging the rejection of its GST refund application (Form RFD01A) in 2023. The rejection was based on the contention that the petitioner availed a higher rate of duty drawback during August 2017. While the SGST portion was sanctioned earlier, the CGST and IGST portions were rejected.
The petitioner argued that as per Section 56 of the CGST Act, interest is not payable on the rejected amount. However, the court found the authorities’ contention incorrect, noting that the petitioner was eligible for the SGST portion refund.
Section 56 of the CGST Act specifies that if a tax ordered to be refunded is not repaid within 60 days from the date of the refund application, interest is payable. The petitioner applied for a refund on January 17, 2018, and the refund was recredited on August 10, 2022.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
