HC: No GST Penalty and Interest If Refund Credited by Authorities Mistakenly

The petitioner filed this writ petition because he was offended by the respondent WBGST Authority’s request that he return the amount in question, along with any applicable penalties and interest, which the respondent authorities claim was reimbursed in error.

By an earlier decision of this court dated January 9, 2023, Mr. Bag, a learned advocate who appeared on behalf of the petitioner, was requested to get the petitioner’s consent to the repayment of the money in question in instalments. According to Mr. Bag, the petitioner has given his consent.

This writ petition, WPA 20541 of 2022, is adjudicated by finding that the petitioner is required to repay the money in concern that was paid to him with interest in light of the case’s facts, circumstances, and submissions from the parties.

Since the respondent/revenue authorities’ own argument is that the amount of the GST refund in concern was paid to the petitioner owing to their error and for no fault of the petitioner, the petitioner is not obligated to pay the penalty on such a refundable amount.

The petitioner should repay the money in question, together with interest computed by the respondents after adjustment with the amount of Rs. 6 lakhs and odd, which the petitioner has already paid, in two equal payments, according to Mr. Bag. The petitioner must pay the first instalment of this by February 15, 2023, and the second instalment by April 1, 2023.

This order will not be enforceable if the instalment payments are not made by the due date specified above, and the relevant respondent authorities will be free to pursue action to recover the full sum from the petitioner. The payment of instalments will be promptly reflected in the petitioner’s electronic credit ledger.