Summary
- The GST Appellate Tribunal, Raipur upheld a demand for ₹44,51,491 in interest on an erroneous refund of ₹90,35,671 to Hindalco Industries Limited, dismissing its appeal against the earlier order.
- The Tribunal ruled that the accumulated ITC converted into a monetary refund qualifies as an erroneous refund under Section 73 of the CGGST Act.
- Hindalco argued that the original refund order attained finality and could not be reopened without following proper appellate procedures, but the Tribunal disagreed.
- This ruling reinforces the authority of tax departments to recover erroneously refunded amounts with interest, potentially affecting future claims by businesses.
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