Refund Claims Must Be Decided With Interest | HC

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Refund Claims Returned By Deficiency Memos Interest Payable

Case Details: Amplify Analytix India (P.) Ltd. vs. Assistant Commissioner of Commercial Taxes [2026] 182 taxmann.com 425 (Karnataka)

Judiciary and Counsel Details

  • S.R.Krishna Kumar, J.
  • Likith Patil.M.K a & Balram R. Rao, Advs. for the Petitioner.
  • Smt. Jyoti M. Maradi, HCGP for the Respondent.

Facts of the Case

The petitioner filed multiple refund applications under Section 54 of the CGST Act and the Karnataka GST Act. These applications were pending with the respondent authority, which repeatedly issued deficiency memos instead of processing the refund requests. It was contended that the repeated issuance of deficiency memos effectively kept the refund applications pending without any substantive consideration or decision. It was submitted that the petitioner may file a fresh refund application along with supporting documents, and upon such filing, the concerned authority would consider the refund claim. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the respondent authority must consider and process the refund applications already filed by the petitioner, and cannot keep them pending through repeated deficiency memos. The Court directed the authority to pass appropriate orders on the existing refund applications and to ensure that applicable interest is paid, as provided under Section 54, read with Section 56 of the CGST Act and the Karnataka GST Act. It was emphasised that the refund claim must be decided on the merits rather than deferred on procedural grounds.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied