Case Of: Lupin Limited
Issued By: Bombay High Court
Order No: Writ Petition No. 610 of 2024
Date: 5th Aug 2025
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The petitioner had filed refund applications under Section 54(1) CGST Act on 14.04.2022 and 12.08.2022, claiming ITC refunds on zero-rated exports.
The authority sanctioned only partial refunds through orders dated 30.06.2022 and 10.10.2022, rejecting large portions.
On appeal, the first appellate authority allowed the entire refund via orders dated 21.04.2023 and 24.04.2023.
Lupinsought interest from 60 days after the original application dates; the Revenue argued interest should run only from the fresh applications filed post-appeal in May 2023.
Sections 54 and 56 CGST Act constitute an integrated scheme for refunds and interest 6% interest is payable if refunds are not made within 60 days from the original application; 9% interest applies if there is delay beyond 60 days after an appellate order when a fresh application is filed.
The Explanation to Sec56 deems an appellate order as equivalent to an order under Sect54(5), ensuring interest is also payable from the first application where delay occurs.
The Court rejected Revenue’s contention that interest accrues only from the post appeal application date, holding that statutory timelines must be applied strictly to both stages.
Relied on Delhi HC (Bansal International) and TelanganaHC (QualcomIndia), which confirm the dual-rate interest structure and entitlement from original application dates.
Directed payment of interest of ₹2.18 crorefrom 14.06.2022 (February refund) and ₹4.10 crorefrom 12.10.2022 (May refund), recognisingthe petitioner’s right to compensation for the delay.