The petitioner sought interest on delayed refund of IGST paid on export of goods. The factual background showed that refunds were withheld on account of the petitioner being flagged as a “risky exporter” and were granted after substantial delay.

The Court held that mere red-flagging without timely completion of investigation cannot justify withholding of refund beyond the statutory period. Interest under Section 56 of the CGST Act was held to be payable from the expiry of sixty days from the date of application. Directions were issued accordingly.