Case Details: Jindal Drugs Pvt. Ltd. vs. Union of India (2026) 40 Centax 234 (Bom.)
Judiciary and Counsel Details
- G. S. Kulkarni & Aarti Sathe, JJ.
- Shri Jas Sanghavi, for the Petitioner.
- S/Shri Jitendra B. Mishra, Abhishek Mishra, Rupesh Dubey, Ms Raju R. Thalekar & Priyanshu Doshi, for the Respondent.
Facts of the Case
The petitioner had earlier filed a writ petition seeking the sanction of a refund along with statutory interest, which was allowed by the High Court. Pursuant to such directions, the department passed orders sanctioning the refund and also granted interest; however, the interest so granted was subsequently reduced by way of a corrigendum without assigning any reasons. The petitioner challenged these orders on the ground that the determination of interest was not in accordance with section 56 of the CGST Act and that no reasons were provided for the manner of calculation. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the impugned orders, to the extent they determined interest, were unsustainable as they did not disclose any reasons or basis for computation in accordance with section 56 of the CGST Act. It was observed that the statutory mandate required the strict application of the provisions relating to the rate and period of interest. It further held that the modification of interest by way of a corrigendum without any reasoning was not in accordance with the law. Accordingly, the orders were set aside to the extent of interest determination, and the designated officer was directed to re-determine the interest strictly in accordance with section 56 after granting an opportunity of hearing to the petitioner.
List of Cases Cited
- Altisource Business Solutions India (P.) Ltd. v. UOI — (2025) 35 Centax 267 (Bom.) = 2025 (103) G.S.T.L. 274 (Bom.) — Referred [Paras 7, 12]
- Jindal Drugs (P.) Ltd. v. UOI — WP No. 4445 of 2021, dated 2-5-2022 — Referred [Para 4]
- Lupin Ltd. v. UOI — (2025) 33 Centax 289 (S.C.) = 2025 (102) G.S.T.L. 151 (S.C.) — Referred [Paras 7, 12]
