Page 77 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] UNION OF INDIA v. WILLOWOOD CHEMICALS PVT. LTD. 179
14-7-2017 1,97,712 4-12-2017 94
14-7-2017 2,26,655 4-12-2017 94
14-7-2017 19720 25-4-2018 236
15-7-2017 16274 4-12-17 94
15-7-2017 25464 25-4-2018 236
15-7-2017 12333 25-4-2018 236
15-7-2017 14917 25-4-2018 236

22. The position of law appears to be well-settled. The provisions relating
to an interest of delayed payment of refund have been consistently held as
beneficial and non-discriminatory. It is true that in the taxing statute the
principles of equity may have little role to play, but at the same time, any
statute in taxation matter should also meet with the test of constitutional
provision.
23. The respondents have not explained in any manner the issue of delay
as raised by the writ-applicants by filing any reply.
24. The chart indicating the delay referred to above speaks for itself.
25. In the overall view of the matter, we are inclined to hold the respond-
ents liable to pay simple interest on the delayed payment at the rate of 9%
per annum. The authority concerned shall look into the chart provided by
the writ-applicants, which is at Page-30, Annexure-D to the writ-application
and calculate the aggregate amount of refund. On the aggregate amount of
refund, the writ-applicants are entitled to 9% per annum interest from the
date of filing of the GSTR-03. The respondents shall undertake this exercise
at the earliest and calculate the requisite amount towards the interest. Let
this exercise be undertaken and completed within a period of two months
from the date of receipt of the writ of this order. The requisite amount to-
wards the interest shall be paid to the writ-applicants within a period of
two months from the date of receipt of the writ of this order.”
4. Thus, this Court directed the applicants herein to pay simple interest
on the delayed payment @ 9% per annum. This Court also directed the appli-
cants to look into the chart provided by the writ applicants Annexure-D page-30
of the main matter.
5. By this application, the applicants seek review of our order to the
limited extent that the directions could not have been for making payment @ 9%
per annum but, in fact, it should have been @ 6% per annum as provided under
Section 56 of the CGST Act.
“Section 56. Interest on Delayed Refunds. - If any tax ordered to be re-
funded under sub-section (5) of section 54 to any applicant is not refunded
within sixty days from the date of receipt of application under sub-section
(1) of that section, interest at such rate not exceeding six per cent. as may be
specified in the notification issued by the Government on the recommenda-
tions of the Council shall be payable in respect of such refund from the date
immediately after the expiry of sixty days from the date of receipt of appli-
cation under the said sub-section till the date of refund of such tax :
Provided that where any claim of refund arises from an order passed by an
adjudicating authority or Appellate Authority or Appellate Tribunal or
court which has attained finality and the same is not refunded within sixty
days from the date of receipt of application filed consequent to such order,
GST LAW TIMES  14th May 2020  77