Recently, The Delhi High Court has directed the appropriate officer to expedite the refund process for a petitioner who sought the Court to direct the refund a sum of Rs.81,79,52/- under section 54 of the Central Goods and Services Act,2017.
The petitioner, AJ Flight Reservations Pvt.Ltd, represented by Advocate Vineet Bhatia, had filed a refund claim on January 31st, 2024 but as of May 8th, 2024 no deficiency memo was issued. Given that the statutory period of sixty days was elapsed by not processing the refund claim, The court directed the proper officer to process and dispose of the application within two weeks.
Read More: GST Refunds: The Complete Digest
According to Section 54 of the CGST Act 2017, “ The proper officer shall issue the order under sub-section (5) within sixty days from the date of receipt of application complete in all respects.”
The petition was disposed by noting that the petitioner retains the right to seek further remedies if aggrieved by any subsequent order from the GST authorities regarding the refund claim and associated interest.
The judgement was made by a division bench consisting of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja. The respondent was represented by Advocate Gibran Naushad.
Read More: GST Refunds: The Complete Digest
In a similar case recently, Division Bench of the Delhi High Court composed of Justice Vibhu Bakhru and Justice Amit Mahajan ruled that interest on delayed Goods and Services Tax ( GST ) refunds should be calculated from the expiration of 60 days after the refund application, not from the date of the appellate order, despite the initial denial. The petitioner contested the order dated 11.07.2023 from the Additional Commissioner of the Department of Trade and Taxes, rejecting the claim for ₹13,12,761 interest on refunded GST at a 9% annual rate.
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