TMI Blog2023 (5) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... to refer to the observations made by the Supreme Court in UNION OF INDIA THROUGH DIRECTOR OF INCOME TAX VERSUS M/S TATA CHEMICALS LTD. [ 2014 (3) TMI 610 - SUPREME COURT] where it was held that The obligation to refund money received and retained without right implies and carries with it the right to interest. Whenever money has been received by a party which ex ae quo et bono ought to be refunded, the right to interest follows, as a matter of course. Undisputedly, if a person is denied of the payment due to him, he is required to be compensated. In SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [ 2006 (1) TMI 55 - SUPREME COURT] the Supreme Court has endorsed the principle that interest would be payable even in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Services Tax (IGST). 3. The refund of SGST for the amount of ₹44,60,713/- was processed and disbursed on 09.03.2022. However, the refund of CGST and IGST was not processed despite the refund order dated 04.10.2021, sanctioning the same. This led the petitioner to file the present petition, inter alia, claiming a refund of ₹68,37,488/- (₹44,60,713/- being CGST and ₹23,76,775/- being IGST). The advance copy of the present writ petition was served on the concerned authorities on 21.04.2023. Apparently, this galvanized the concerned authorities to take steps and disburse the amount of refund that was sanctioned on 04.10.2021. A letter informing the petitioner of disbursal of the said amount was issued on 23.04.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay in disbursing the refund. 9. Mr. R. Ramachandran, learned counsel for the respondents submits that the concerned department is unable to process the refund as there is no statutory provision for grant of this refund. 10. Interest is essentially a compensation to a person who has been deprived of use of the amounts due to him. It is relevant to refer to the following observations made by the Supreme Court in Union of India v. Tata Chemicals Ltd.: (2014) 6 SCC 335: 38. Providing for payment of interest in case of refund of amounts paid as tax or deemed tax or advance tax is a method now statutorily adopted by fiscal legislation to ensure that the aforesaid amount of tax which has been duly paid in prescribed time and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2021) till the date of payment, that is, 27.04.2023. 13. In so far as the rate of interest is concerned, the same is required to be compensatory and not necessarily pegged at 6% per annum as contended by Mr Ramachandran. However, since the learned counsel for the petitioner states that the rate of 6% per annum, and the same is also stipulated rate of interest in the statute; we find no reason to undertake further examination as to the apposite compensatory rate of interest. 14. In view of the above, the present petition is disposed of by directing the respondents to pay the interest on the amount of ₹68,37,488/- from 01.11.2021 till 27.04.2023 at the rate of 6% per annum as expeditiously as possible and, in any event, before 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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