Bombay HC Invoked Section 144 CPC for Interest on Delayed IGST Refund
Judgment dated of the High Court of Bombay in Writ Petition No.3000 of 2023 (OS) of West India Continental Oils Fats Pvt Ltd Vs. The Union of India and others
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Bombay HC Invoked Section 144 CPC for Interest on Delayed IGST Refund
The petitioner paid IGST of Rs.2,62,37,558/- during July 2017 to April 2019 on ocean freight for the goods imported at the ports in the State of Maharashtra.
The petitioner claimed refund of the said IGST under reverse charge mechanism.
On 31.1.2023, the refund was sanctioned but the interest claim of Rs.71,31,225/- was rejected.
HELD that admittedly the petitioner had paid the IGST amount which was utilized by the respondents till the date of refund. There is no justification, legal or otherwise, to deny interest to the petitioner. To deny interest to the petitioner, in the given facts, would run contrary to the well recognised legal principle of restitution having statutory force under Section 144 of the CPC.
