GST DAILY – 425 : Interest on refund is payable even if application was initially rejected but later allowed by court: HC

THE HON’BLE DELHI HIGH COURT IN THE CASE OF J.M. Plastic Industries V/s Deputy Commissioner of Central Tax GST, decided on 16-12-2024

 👉 Issue:-

✔️ Is Assessee get Interest on refund if application was initially rejected but later allowed by court?

👉 The Hon’ble High Court Judgement:-

✔️ Where pursuant to rejection of refund claim of assessee, instant court had allowed issue in favour of assessee, however, respondent authority denied interest on refund on remand, such order was in contravention of directions issued by instant court, therefore, same was to be set aside and interest was to be computed as per section 56.

Section 56, read with section 54 of Central Goods and Services Tax Act, 2017