Case Details: Charan Singh Surjit Singh Gujral vs. Union of India (2026) 42 Centax 350 (Bom.)
Judiciary and Counsel Details
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- G. S. Kulkarni & Aarti Sathe, JJ
- S/Shri Brijesh Pathak, Ms Anjali Joshi & Dulraj Jain, for the Petitioner.
- Shri S. D. Deshpande, for the Respondent.
Facts of the Case
The petitioner, an exporter of motor vehicle and mobile accessories, exported goods under shipping bills after paying the IGST. The assessments of these shipping bills operated as refund applications under section 54 of the CGST Act. However, the refund was withheld after SIIB seized the goods on allegations of undervaluation and initiated confiscation proceedings. Subsequently, the appellate authority set aside the confiscation orders, and this decision attained finality. During the pendency of the writ petition, the department sanctioned the entire IGST refund. The dispute remained only with regard to the payment of interest on the delayed refund. The matter was then placed before the High Court.
High Court Held
The High Court held that the shipping bill assessments constituted valid refund applications under section 54. Consequently, the refund was required to be granted within the statutory period of sixty days. It was observed that if the refund was not granted within this prescribed period, section 56 mandated the payment of interest until the date of refund. Furthermore, the High Court noted that the appellate orders setting aside confiscation had attained finality. Therefore, the withholding of a refund could not negate the statutory entitlement to interest. Accordingly, the department was directed to pay interest on the delayed IGST refund.
List of Cases Cited
Ms Anita Agarwal v. Union of India — Writ Petition No. 1474 of 2023, dated 14-11-2024 — Referred [Para 10]
List of Departmental Clarification Cited
Circular No.131/1/2020, dated 23-1-2020
