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2021 (2) TMI 140 - HC - GSTRefund of unutilised input tax credit - interest for delayed payment of refund - Circular No.14/14/2017-GST, dated 6.11.2017 or notification No. 48/2017-Central Tax, dated 18.10.2017 - HELD THAT:- We are in complete agreement with the views expressed by the Department in Para 5 of the affidavit inasmuch as the circular is absolutely clear and the Department cannot insist upon an assessee to retrospectively comply with the circular. Consequently, the said circular operates prospectively from the date of the notification and not retrospectively since the circular came into effect from 06.11.2017. The said notification would have no application for the transactions entered into prior thereto - It is also clarified by the learned counsel for the Revenue that in the circumstances of the present case, there is no chance for supplier seeking refund thereof and consequently, there is no opportunity of double claim for unutilised input tax credit. To govern the procedure for claiming refund on such supplies, circular No.14/14/2017-GST, dated 06.11.2017 was issued, which also provided certain safeguards to prevent any dual claims of refunds. In view of the categorical assertion made by the learned counsel representing the Revenue that the aforesaid circular and notification would have no application to transactions entered into prior to the aforesaid circular and since admittedly the transactions for refund of unutilised input tax credit claimed pertains to the period July to October, 2017, consequently, there is no lawful impediment in justifying denial of refund of unutilised input tax credit to the petitioner. The impugned order dated 03.01.2020 is set aside and directions are issued to respondent No.2 to effect refund of unutilised input tax credit along with statutory interest that may be payable thereof within a period of two weeks from the date of the service of the certified copy of this order on the respondents - Application allowed.
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