M/s SNG Impex Through Proprietor Satya Narayan Gupta Vs. Principal Commissioner of Customs – MANU/GJ/1360/2022 – (High Court Gujarat)

Statutory interest on delayed GST refund is liable to be paid to applicant

Facts: The writ applicant preferred the writ application before the Hon’ble High Court seeking directions to the respondents to immediate sanction the IGST refund of Rs. 7,69,093/- paid in respect of the goods exported at zero rated supply through shipping bills mentioned therein.  Further directions were sought for directing the respondents to pay interest @12% from date of shipping bills uptill the date of payment of refund amount to the petitioner.

Petitioner’s Stand

It was submitted on the behalf of the petitioner that during the pendency of the writ application, the amount of IGST refund has been sanctioned and paid to the writ applicant.  Thus the only grievance is with respect to the interest on the delay payment of refund amount at the rate of 7%.


  • The Hon’ble High Court after considering the submissions made and the facts of the case noted that the issue with respect to the payment of interest is no longer res integra after the judgment of the same High Court in the matter of M/s. Amit Cotton Industries vs. Principal Commissioner of Customs, Special Civil Application No. 20126 of 2018.
  • The Hon’ble High Court following the ratio laid down in the aforesaid judgment directed the respondents to calculate the interest on the principal amount at the rate of 7% and make the payment of the same to the writ applicant within a period of six weeks from the date decision. 

The Hon’ble High Court with the above findings disposed of the writ application.




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