The Delhi High Court has directed to decide the matter on Interest payable along with refund under section 42 of the Delhi Value Added Tax Act, 2004. The revenue respondent allowed a refund under section 42 of the VAT Act without allowing interest.
Blue Star Limited, the petitioner seeks to direct the respondents to issue a refund of Rs. 28,36,313/- along with interest under Section 42 of the Delhi Value Added Tax Act, 2004 [ “the Act” ].
The respondents have produced a refund order dated 24.01.2024 wherein a refund of Rs. 28,36,313/- has been allowed. About the interest in terms of Section 42 of the Act, the refund order indicates a “Nil” amount. The respondents submitted that within two weeks, the refund is likely to be credited to the account of the petitioner.
A division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja disposed of the petition with a direction to the respondents to pass an appropriate speaking order as to why interest in terms of Section 42 of the Act is not payable to the petitioner.
It was held that “In case respondents are of the view that interest is payable, the same shall be paid within two weeks of the passing of the speaking order. In case the same is not payable, speaking order will be duly communicated to the petitioner, who shall be entitled to take such further remedies as may be permissible in law inter alia approaching this Court by way of an application.”
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