Union Of India & Ors. Vs Willowood Chemicals Pvt. Ltd. (Supreme Court of India)
Facts- M/s. Willowood Chemicals Pvt. Ltd. submitting that said Writ Petitioner was entitled on the basis of Section 16 of the IGST Act read with Section 54 of the CGST Act for compensation in receipt of delayed payment as detailed in Annexure D of the petition, which in turn dealt with 12 refunds with delay ranging between 94 to 290 days.
The main question in the present matter is that there is no dispute with regard to availability of refund along with interest for delayed payment of the claim. The dispute is it is alleged that interest of 6% is payable, however, assessee argues the interest of 9% per annum.
Conclusion- Held that rate of interest is 6 per cent where the case for refund is governed by the principal provision of Section 56 of the CGST Act.
In terms of the principal part of Section 56 of the CGST Act, the interest would be awarded at the rate of 6 per cent. The award of interest at 9 per cent would be attracted only if the matter was covered by the proviso to the said Section 56.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
