KUEHNE NAGEL PVT. LTD. vs THE UNION OF INDIA
- Court
- Gujarat High Court
C/SCA/4373/2026 JUDGMENT DATED: 02/07/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 4373 of 2026
With
R/SPECIAL CIVIL APPLICATION NO. 4408 of 2026
With
R/SPECIAL CIVIL APPLICATION NO. 663 of 2026
With
R/SPECIAL CIVIL APPLICATION NO. 667 of 2026
With
R/SPECIAL CIVIL APPLICATION NO. 669 of 2026
With
R/SPECIAL CIVIL APPLICATION NO. 671 of 2026
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI
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Approved for Reporting Yes No
✔
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KUEHNE NAGEL PVT. LTD. & ANR.
Versus
THE UNION OF INDIA & ORS.
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Appearance:
DHRUV TOLIYA(9249) for the Petitioner(s) No. 1,2
MR RAJ TANNA, AGP in SPECIAL CIVIL APPLICATION No.4373 of 2026
and MS NIMISHA J PAREKH, AGP in SPECIAL CIVIL APPLICATION Nos.4408 of
2026, 663 of 2026, 667 of 2026, 669 of 2026 and 671 of 2026 for the
Respondent(s) No. 2
MR ANKIT SHAH(6371) for the Respondent(s) No. 1,3
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CORAM: HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI
Date : 02/07/2026
COMMON ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. Rule returnable forthwith. Learned Assistant Government
Pleader and learned Senior Standing Counsel waives service of
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notice of Rule for and on behalf of the respective respondents
in respective captioned writ petitions.
2. Since the issue involved in all the captioned petitions are
identical, with consent of learned advocates appearing for the
respective parties, are taken up for final disposal. The Special
Civil Application No.4373 of 2026 is treated as the lead matter.
For the purpose of passing the present order, the facts are
incorporated from the said petition.
3. In the present petition, the petitioner has prayed for
quashing and setting aside the impugned order dated
09.02.2026 passed by the respondent No.3 to the extent of
denial of interest. The petitioner has been paid the amount of
refund of Rs.2,29,32,535/- however, the interest claimed
amounting to Rs.29,51,700/- is rejected by assigning the
reason that the condition for accrual of interest under Section
56 of the Central Goods and Services Tax Act, 2017 (for short
‘the CGST Act’) are not satisfied.
4. It is not in dispute that the petitioner had filed the
original refund application dated 14.10.2023, however, the
said refund application was not accepted, which constrained
the petitioner to file the writ petition being Special Civil
Application No.12151 of 2025. By the judgment and order
dated 06.11.2025, this Court set aside the action of the
respondents in refusing the refund application. Thereafter, the
respondent authority passed the impugned order sanctioning
the refund however, denying the interest as mentioned herein
above.
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4.1 The original refund application filed by the petitioner on
14.10.2023 since was rejected and pursuant to the order
passed by this Court, the petitioner again filed the refund
application on 11.11.2025 however, the respondent authorities
have denied the interest by invoking the provisions of Section
56 of the CGST Act. The respondent – Proper Officer has
construed the date of subsequent filing of the refund
application to deny the interest.
5. This Court in the judgment and order dated 06.11.2025
while allowing the writ petition being Special Civil Application
No.12151 of 2025, has observed thus:
“7. It was, thus, held by this Court that the Chartered
Accountant’s Certificate produced by the petitioner was bound to be
considered by the respondent. In view of the same and in view of
the decision rendered by this Court in Special Civil Application No.
13427 of 2024, the respondent authorities are directed to process
the refund claim of the petitioner filed for the period from July 2021
to September, 2021 and October 2021 to December 2021 in
accordance with law within a period of twelve weeks from the date
of receipt of copy of this order.”
6. Thus, the Court found the action of the respondents in
denying the refund in processing the refund application, which
was filed on 14.10.2023, and in fact, it is observed that the
refund application ought to have been processed in view of the
Chartered Accountant’s Certificate produced by the petitioner.
7. Under the circumstances, we are of the considered
opinion that the respondent authority was required to consider
the date of initial refund application filed by the petitioner for
calculating the interest instead of the subsequent application,
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which was filed after the order passed by this Court, in wake of
the fact that the initial action of the respondents in refusing
the process the refund pursuant to the claim filed by the
petitioner vide application dated 14.10.2023 was held illegal,
upon setting aside the former action of denial of refund, the
fresh application filed for refund satisfies the provisions of
Section 56 of the Act and the claim of interest has to be
processed by considering the date of earlier application. Thus,
we direct the respondents to pass necessary orders on the
respective claim of interest on refund filed by the petitioner in
light of the observations made by this Court. The impugned
orders to such extent are set aside. The same shall be done
within a period of twelve (12) weeks from the date of receipt of
this order. All the captioned writ petitions stand allowed,
accordingly. Rule is made absolute to the aforesaid extent. No
order as to costs.
(A. S. SUPEHIA, J)
(VAIBHAVI D. NANAVATI,J)
NEHA/17/18/110-113
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