Desk of CA. Praveen Sharma GST: Edatabook

Desk of CA. Praveen Sharma – 827 Series (CAPS)

DELHI HIGH COURT IN THE CASE OF Ernst and Young Limited

Writ Petition Filed: Petitioner approached Delhi HC under Article 226, challenging denial of interest on GST refunds sanctioned for FYs 2017-18, 2018-19, 2019-20 & 2021-22.
Refund Orders: Orders-in-Original were passed on 19 June 2023 & 24 August 2023. Petitioner claimed interest @9% on delayed refunds.
Claimed Interest: Approx ?28.40 lakh sought, with a year-wise breakup presented in Court.
Court Reference: Both parties were directed to consider the precedent of M/s G.S. Industries v. Commissioner of CGST Delhi West.
Law Cited: Sections 54 & 56 of the CGST Act govern refund timelines & interest—6% after 60 days of delay, 9% if refund follows appellate/adjudicatory final orders.
Petitioner’s Stand: Deficiency memo was issued late (beyond 15 days as per Rule 90), so interest must run for the full period.
Revenue’s Stand: Defects were genuine; delay also due to petitioner taking around 74 days to respond to deficiency memo.
Court’s Decision: Matter remanded to Adjudicating Authority to compute interest as per G.S. Industries. Computation within 2 months, payment within 1 month thereafter.

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