9911796707
TMI Blog2024 (5) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.06.2015 i.e. expiry of two months from the date of filing of refund of the application till 23.05.2023 when the refund was disbursed to the petitioner. 2. Issue notice. Notice is accepted by learned counsel appearing for the respondents. With the consent of parties, the petition is taken up for final disposal. 3. Section 38 of Delhi Value Added Tax Act, 2004 reads as under:- "Section 38: Refunds:- (1) Subject to the other provisions of this section and the rules, the Commissioner shall refund to a person the amount of tax, penalty and interest, if any, paid by such person in excess of the amount due from him. (2) Before making any refund, the Commissioner shall first apply such excess towards the recovery of any other amount due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culating the period prescribed in clause (a) of sub-section (3), the time taken to - (a) furnish the security under sub-section (5) to the satisfaction of the Commissioner; or (b) furnish the additional information sought under section 59; or (c) furnish returns under section 26 and section 27; or (d) furnish the declaration or certificate forms as required under Central Sales Tax Act, 1956, shall be excluded. (8) Notwithstanding anything contained in this section, where - (a) a registered dealer has sold goods to an unregistered person; and (b) the price charged for the goods includes an amount of tax payable under this Act; (c) the dealer is seeking the refund of this amount or to apply this amount under clause (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or claim for the refund was made. In the instant case, the petitioner had made an application for refund on 31.03.2015 by filing a VAT Return for the Fourth Quarter of 2013-2014. Accordingly, in terms of Section 38 (3) (a) (ii), the refund claim become due on expiry of two months w.e.f 01.06.2015. 5. It is an admitted position that refund has been sanctioned and disbursed to the petitioner on 23.05.2023, however, without any interest. 6. Further, Section 42 of the Act reads as under:- "Section 42: Interest:- (1) A person entitled to a refund under this Act, shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the Government from time to time, computed on a daily basis from the late ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any court or any other authority and the order is subsequently vacated, interest shall be payable for any period during which such order remained in operation. (5) The interest payable by a person under this Act may be collected as tax due under this Act and shall be due and payable once the obligation to pay interest has arisen." 7. Section 42 (1) of the Act mandates grant of simple interest at the annual rate notified by the Government from time to time, to a person who is found entitled to refund in case of any delayed payment. 8. In the instant case, refund has been sanctioned without any interest. It is an admitted position that annual rate notified by the Government for the purposes of Section 42 of the Act is simple interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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