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IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH
M. NAGAPRASANNA
Shree Renuka Sugars Limited – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
| Table of Content |
|---|
| 1. details of the refund process and delays. (Para 1 , 2) |
| 2. petitioner's claim for interest on delayed refund. (Para 4) |
| 3. respondent's argument against interest claim. (Para 5) |
| 4. court's analysis on interest entitlement. (Para 6 , 8 , 9) |
| 5. precedents supporting petitioner's claim for interest. (Para 10 , 11) |
| 6. court's final order granting interest. (Para 12) |
ORDER :
M.NAGAPRASANNA, J.
The petitioner is before this Court seeking the following prayer:
“A) Issue an appropriate writ or order in the nature of Mandamus or otherwise, directing the Respondents to grant interest on delayed refund of Rs. 2,60,92,283/-at the rate of 6% from 25.05.2021 (being 90 days from 24.02.2021, i.e. date of issue of Form 5 by the designated authority) up to 10.01.2024 [being date of payment of refund] or alternatively at the rate of 6% for the period of delay from 31.07.2021 [i.e. the due date for passing of consequential order to Form 5 as per the Central Action Plan for FY 2021-22 formulated by the CBDT] to 10.01.2024 [being date of payment of refund];
(B) Issue an appropriate writ or order in the nature of Mandamus or otherwise, directing the Respondents to grant further interest on such i
In tax matters, entitlement to interest on delayed refunds, including on interest accrued, is affirmed, highlighting the principle that overdue amounts accrue additional interest.
The court held that the Revenue is accountable for delayed refunds and must pay interest despite the exclusion in the Direct Tax Vivad se Vishwas Act, 2020.
The court ruled that interest on delayed refund is due despite provisions of the VSV Act denying such interest, emphasizing accountability for wrongful retention of funds.
Petitioner entitled to interest on delayed refund from the date of entitlement, despite provisions of VSV Act prohibiting interest prior to refund determination.
The main legal point established in the judgment is that the petitioner is entitled to interest as calculated by the petitioner and confirmed by the respondent, and is also entitled to interest durin....
The main legal point established in the judgment is that interest on delayed refunds is a statutory liability under Section 11BB of the Central Excise Act, 1944, and becomes payable if the duty order....
The interest would be payable in terms of the provisions of the statute and any delay in paying the compensation or the amounts due would attract award of interest at a reasonable rate on equitable g....
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