The Delhi High Court directed to consider the issue of interest payable along with refund under the Delhi Value Added Tax ( DVAT ) Act, 2004. It was found that the refund under the DVAT Act was processed without allowing interest.
The Petitioner was represented by Mr Mohit Gautam and the respondent was represented by Mr Rajeev Aggarwal, with Ms Samridhi Vats.
The Petitioner, M/S Vimal Electrical Pvt Ltd sought a refund for the tax period 01.01.2017 to 31.03.2017. Counsel for the respondents submitted that the refund has been processed and sanctioned in favour of the petitioner though without interest.
In view of the above, the division bench comprising of Justice Sanjeev Sachdeva And Justice Ravinder Dudeja disposed of the writ petition by directing the respondents to also pass an order considering the payment of interest in terms of section 42 of the Delhi Value Added Tax Act, 2004. In case interest is payable, the same be also paid to the petitioner within four weeks. However, in case the department is of the view that interest is not payable, a speaking order be passed and communicated to the petitioner within the said period of four weeks.
Further held that it will be open to the petitioner to avail of further remedies as may be permissible in law if aggrieved by the said order.
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