HC directed Dept. to pay interest of 6% for wrong encashment of bank guarantee
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 9 February, 2023
Latest from Taxmann
Case Details: LM Wind Power Blades (India) (P.) Ltd. v. Union of India - [2023] 147 taxmann.com 114 (Karnataka)
Judiciary and Counsel Details
-
- S.R. Krishna Kumar, J.
- Tushar Jarwal & Raghuram Cadambi, Advs. for the Petitioner.
- Akash. B. Shetty, Adv. for the Respondent.
Facts of the Case
The petitioner had furnished bank guarantees for release of goods and had also paid pre-deposit amount for filing appeal against order demanding tax and penalty. However, the department had illegally encashed bank guarantee. The petitioner filed writ petition against the same and the High Court had directed department to refund encashed amount with interest. The department had granted refund but had rejected interest claim. It filed petition against the non-compliance by the department.
High Court Held
The Honorable High Court noted that the petitioner was entitled to both refund and interest as per Court’s order. The contention of department that petitioner was not entitled to interest in the absence of provisions granting such interest in case of refund of bank guarantee enchased was erroneous as such interest accrued by virtue of judgement passed by High Court. Therefore, as per principle of restitution, the petitioner was entitled to interest. Thus the Court directed the department to pay interest at the rate of 6 per cent and the impugned order rejecting interest claim was quashed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
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
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
