2010 (9) TMI 1257 - HC - VAT and Sales Tax

Summary

Issues involved: Refund of amount with interest u/s 42 of the Delhi Value Added Tax Act, 2004.

Refund of Amount: The respondents had not refunded the amount with interest as payable to the petitioner u/s 42 of the Act. The counter affidavit claimed that the amount had been refunded, detailing the specific amounts refunded for various months in 2009.

Interest Calculation: The main issue was whether the granting of refund interest should have been allowed. Section 42 of the Value Added Tax Act, 2004 mandates that a person entitled to a refund shall receive simple interest at the notified annual rate, calculated on a daily basis. The interest calculation should be done by the Value Added Tax Officer and paid to the petitioner within eight weeks from the date of the order.

Conclusion: The High Court held that the petitioner was entitled to interest on the refunded amount as per the provisions of Section 42 of the Act. The writ petitions were allowed, directing the calculation and payment of interest within a specified timeline, with no orders as to costs.