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TMI Blog2023 (2) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the petitioner can be denied interest on the amount of refund which has been unjustifiably withheld, mainly for two reasons. First, that there is no dispute that the petitioner is entitled to the refund and his return was required to be considered as an application for the same. The petitioner was not required to approach or pursue the authorities for its claim for refund of excess tax. Second, that the delay in processing claims for refund is endemic to the DVAT authorities and if the same is considered, the delay on the part of the petitioner approaching this court is not long. Although the petitioner has not approached this Court immediately after the refund of tax became due, we are unable to accept that the same disentitles t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was framed on 31.03.2018 and a demand for the fourth quarter of the year 2013-14 was framed raising a demand of ₹34,582/-. A notice was issued for the aforesaid amount. 5. The petitioner claims that the liability for the said amount was assessed on account of some difference in the output tax liability and the input tax credit. 6. The petitioner claims that it continued to pursue the concerned authority for seeking the refund, which according to the petitioner, was due within a period of two months from filing of the return / revised return. 7. The petitioner also contends that even if the additional liability of ₹34,582/- is accepted, the petitioner s claim for refund would at best be reduced by the aforesaid amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efund, simple interest at the annual rate notified by the government from time to time computed on a daily basis. It fixes the time from which the interest is payable i.e. the date on which refund was due to be paid to the assessee; or the date when the overpaid amount was paid by that person, whichever was later. Interest is payable up to the date on which the refund is given. Sub-section (1), therefore, fixes the starting point and the end point. With reference to the starting point, the date on which the refund was due to be paid to the assessee or the date when the overpaid amount was paid by the assessee, whichever is later is applicable. There is also stipulation in the first proviso with regard to adjustment, deduction etc. with whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the said period would be excluded from the period for which interest is payable under Section 42 of the DVAT Act. 14. In the present case, there is no material on record to indicate that the petitioner was responsible for any part of the delay in processing the refund. There is no allegation to the aforesaid effect either. 15. Mr. Satyakam, learned counsel appearing for the respondent has submitted that there has been some delay on the part of the petitioner in approaching this Court by filing a writ petition and therefore, the period of delay ought to be excluded for the purpose of computing the period for which interest is payable to the petitioner. He referred to the decision of the Hon ble Supreme Court in Union of India v. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent department has collated the data from the year 2005 till date and 14,024 refund claims are pending in respect of 9,990 assesses as on 21.02.2023. 19. This Court is also conscious of the fact that any person would reflect before taking a legal recourse and would approach the courts only as a matter of last resort. 20. In the facts of the present case, the petitioner had received a notice under Section 59(2) on 19.10.2015 and in view of the same, was aware that some proceedings were pending before the DVAT authorities. The default assessment was framed on 31.03.2018. Obviously, the petitioner could not be expected to immediately approach this Court thereafter. 21. Further the period of two years till 28.02.2022 is require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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