Case Law Details
Baba Super Minerals Private Limited Vs Union of India (Rajasthan High Court)
Introduction: In the case of Baba Super Minerals Private Limited Vs Union of India, the Rajasthan High Court addressed the issue of interest payment on refunds under Section 56 of the Central Goods and Services Tax Act, 2017 (CGST Act).
Detailed Analysis: The petitioner sought refund of taxes under the CGST Act, submitting applications with Form GST RFD-01A and Refund ARN receipt. Although deficiencies were initially pointed out by the respondents, they were rectified by the petitioner. Despite this, interest on the refunded amount was not granted by the authorities.
The petitioner contended that under Section 56 of the CGST Act, interest is payable from the 60th day of refund application submission. The respondents argued that due to deficiencies in the applications, interest was not applicable. However, the court noted that in one case, there were no deficiencies, yet interest was denied.
Section 56 stipulates that if a refund is not processed within 60 days of application receipt, interest must be paid. The court reasoned that the date of receipt refers to when a complete application is received, accounting for the time taken to rectify deficiencies. Thus, interest should be calculated from this adjusted date.
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