9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 956 - HC - VAT and Sales TaxInterest on delayed refund - relevant period for calculation of refund - Section 42(1) of the DVAT ACT, 2004 - HELD THAT - Reference may be had to Article 25 of the Schedule to the Limitation Act, which stipulates that the period of limitation for money payable for interest upon money due from defendant to the plaintiff is 3 years and the time from which the period begins is when the interest becomes due. The petitioner would be entitled to interest for a period of three years immediately preceding the filing of the subject petition till the date payment was made of the petitioner. The rate of interest applicable would be @ 6 % per annum in terms of Notification No. F.3(59)/Fin.(T E)/2005-06/903 Dated 30th November, 2005 whereby the annual rate notified by Central Government is 6% per annum. This petition is disposed of directing the respondents to pay interest @6% on Rs. 37,99,453/- refunded on 28.07.2022 for the period of three years immediately preceding the filing of the petition till the date of disbursal of refund to the petitioner.
Issues involved:
The main issue in this case is the entitlement of the petitioner to receive interest on a delayed refund amount as per the provisions of the DVAT Act, 2004. Summary of Judgment: Refund Order and Interest Claim: The petitioner sought direction for a refund of Rs. 37,99,453 along with interest u/s 42(1) of the DVAT Act, 2004. A refund order was issued for the said amount, but without any interest. The surviving issue pertained to the interest to be paid on the delayed refund and the period thereof. Legal Provisions: Reference was made to Section 38 of the Act regarding refunds and Section 42 concerning interest entitlements for a person entitled to a refund. The Act stipulates that a person entitled to a refund shall receive simple interest at the annual rate notified by the Government. Petitioner's Claim: The petitioner contended that there was an unexplainable delay by the respondents in refunding the amount, and interest should be paid as per the statutory provisions. The interest rate was claimed to be 6% annually from the due date of refund. Respondents' Argument: The respondents argued that the petitioner approached the Court after a substantial delay of nearly 13 years, and thus should not benefit from interest for this period. They raised concerns about the lack of refund claims on the DVAT portal and the need for proper documentation for refund verification. Court's Decision: Considering the provisions of the DVAT Act and the Limitation Act, the Court held that the petitioner was entitled to interest for a period of three years preceding the filing of the petition. The interest rate was fixed at 6% per annum, as notified by the Central Government. The respondents were directed to pay interest on the refund amount within four weeks from the date of the judgment. Conclusion: The petition was disposed of with a ruling in favor of the petitioner, granting interest at the specified rate on the refunded amount for the determined period preceding the petition filing. This summary provides a detailed overview of the judgment, highlighting the key legal aspects and arguments put forth by both parties in the case.
|
