The Delhi High Court recently directed the Commissioner, Value Added Tax to consider interest payable towards interest on VAT refund to the petitioner.
The petitioner’s plea highlighted the absence of interest despite the credited refund. According to the counsel for the petitioner, the refund amount has been successfully credited to the petitioner’s account following the filing of the petition.
However, the petitioner emphasized the need for interest on the refunded amount.
The petitioner counsel submitted that, “the refund amount of Rs 1,40,43,039/- has been credited to the account of the petitioner. However, no interest has been paid thereon.
In resolution, the High Court disposed of the petition by directing the respondent to assess the petitioner’s entitlement to interest as per Section 42 of the Delhi Value Added Tax Act, 2004. The court ordered the respondent to undertake this assessment within a period of two weeks.
Should the authorities identify any amount due and payable under Section 42, the court mandated its timely crediting to the petitioner’s account within two weeks thereafter. However, in the event that the authorities determine that interest is not liable under Section 42, the court instructed the issuance of a speaking order communicating this decision to the petitioner within two weeks.
The Delhi High Court ruling affords the petitioner the right to explore further legal remedies in case of disagreement with the speaking order provided. The entire petition was resolved in adherence to the aforementioned terms.
This decisive action by the Delhi High Court not only ensures a prompt resolution to the petitioner’s concerns but also emphasizes the significance of adhering to the provisions of the Delhi Value Added Tax Act, 2004.
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