9911796707
TMI Blog2024 (4) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of 90 days from the date the refund was due and @1.5% per month after the expiry of 90 days. 2. An assessment order was framed on 30.03.2006 for the assessment year 2004-05, whereby petitioner was found entitled to a refund of Rs. 20,18,729/-. Said refund order was passed under Section 16 of the Delhi Sales Tax Act, 1975 [hereinafter referred as "the Act"] read with Section 23 of the said Act. 3. During the pendency of the subject proceedings, refund in the sum of Rs. 20,18,729/- has been granted to the petitioner on 18.05.2022 however, without any interests. 4. The surviving issue in the present petition is with regard to the interest to be paid to the petitioner on the delayed refund and period thereof. 5. Reference may be had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the prescribed manner: Provided that the Commissioner may allow a claim for refund to be made after the expiry of the said period but not later than twelve months from such expiry, if he is satisfied that there was sufficient cause for not making such claim within that period. (4) Where an amount required to be refunded by the Commissioner to any person as a result of any order passed in appeal or other proceedings under this Act is not so refunded to him within ninety days from the date of his claim under sub-section (3), such person shall be entitled to be paid simple interest on such amount at one per cent. per month from the date immediately following the expiry of the period of ninety days for a period of one month and at one an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale on the course of inter-State trade or commerce, in such manner and subject to such conditions as may be prescribed. Explanation. - For the purposes of sub-section (8), "declared goods" means goods declared by section 14 of the Central Sales Tax Act, 1956 (74 of 1956) to be of special importance in inter-State trade or commerce." 6. Section 30(3) of the Act stipulates that no claim for refund would be allowed unless it is made within 12 months from the date of the order giving rise to claim of such refund becoming due. It is an admitted position that refund became due to the petitioner by the framing of assessment on 30.03.2006. Petitioner, thereafter, made a claim in terms of Section 30(3) on 05.05.2006. Said claim remained pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disbursed. 10. Per Contra, learned counsel for respondents submits that the petitioner approached this Court with a substantial delay of nearly 13 years and as such, the petitioner cannot benefit for the said period on account of interest. Learned counsel submits that though rate of interest stipulated in the Act is 18%, it was subsequently repealed and Delhi Value Added Tax Act, 2004 was enacted, which mandated delay refund with interest @ 6% per annum. Petitioner should not be sanctioned interest @18%. 11. 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 whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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