Section 56 of the CGST Act, 2017 --- Interest on Refund —- The petitioner claimed interest under Section 56 from the date when the initial application for refund was filed. On the other hand, the respondent submitted that in terms of the proviso appended to Section 56 , interest will get triggered 60 days after the date when this court passed an order. The court observed that the main part of Section 56 would show that if any tax is ordered to be refunded under Section 54(5) and if the same is not refunded within sixty days from the date of receipt of an application, interest at such rate not exceeding 6%, as has been specified, is payable immediately after the expiry of sixty (60) days. The argument of the respondent that the refund order dated 24.05.2019 came to be passed on account of the order issued by the Coordinate Bench of this Court and therefore, the trigger point for commencement of the period of refund as stipulated in the proviso appended to Section 56 will apply, does not find favour. The reason for this is that the proviso, is an exception to the main part of the Section 56 of the CGST Act and the proviso is triggered only when the facts of a case do not fall in the main part.The petitioner is right in its contention that interest should trigger in accordance with the main part of Section 56.

Held that:- The Hon’ble Court directed the respondents to remit the interest to the petitioner, within two weeks.