VAT Refund over Rs. 13 Lakhs Pending: Delhi HC directs Payment with Statutory Interest as per DVAT Act [Read Order]

The Delhi High Court has directed the payment of Value Added Tax ( VAT ) refund exceeding Rs. 13 lakhs, along with statutory interest as per the Delhi Value Added Tax ( DVAT ) Act, as it remains pending.

Mr. A.K. Babbar representing the petitioner asserted that the subject return for the first quarter /financial year 2017-18 was filed within the prescribed time and due date for issuance of refund was on 02.10.2017. He further contended that as of the present moment, the applications remain marked as pending. Additionally, he noted that refund till date has not been processed and credited to the account of the petitioner.

A person entitled to a refund under Section 42 of the DVAT Act, 2004, 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 later of the date that the refund was due to paid to the person or the date that the overpaid amount was paid by the person, until the date on which the refund was given.

The bench, comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja, concluded the petition by directing the respondents to process the petitioner's refund application in accordance with the law. If found eligible, the refund, along with statutory interest as per Section 42 of the DVAT Act, 2004, was ordered to be disbursed to the petitioner. However, if the refund was deemed non-refundable, the reasons for such decision were to be communicated to the petitioner, allowing them to pursue appropriate legal remedies. This process was mandated to be completed within four weeks from the date of the directive.

To Read the full text of the Order CLICK HERE

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