Section 16 of the IGST Act, 2017 —- Refund — The applicant prayed for directions to the respondent to immediately sanction the refund of IGST of Rs. 7,69,093/- paid in regard to the goods exported along with interest. The counsel for the applicant submitted that during the pendency of the present writ, the refund of IGST of Rs. 7,69,093/- has been sanctioned. However, the statutory interest for the delayed payment at the rate of 7% has not been paid. The court observed that the issue as regards payment of interest is no longer res integra after the judgment of this High Court in the case of M/s. Amit Cotton Industries vs. Principal Commissioner of Customs.

Held that:- The Hon’ble High Court directed the respondents to calculate the interest on the principal amount at the rate of 7% and make the necessary payment to the writ applicant within a period of six weeks.