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VIBHU BAKHRU, AMIT MAHAJAN
Ramky Infrastructure Limited – Appellant
Versus
Commissioner of Trade & Taxes – Respondent
JUDGMENT
Vibhu Bakhru, J.
INTRODUCTION
1. The petitioner has filed the present writ petition, inter alia, praying that the respondent be directed to refund the amount of Rs.54,58,897/-, along with interest with effect from 01.06.2015. The said sum of Rs.54,58,897/- as claimed by the petitioner, relates to the fourth quarter of the Financial Year 2013-14 and was included in the petitioner's claim for refund of Rs.2,64,77,458/-, in its revised return of Value Added Tax for the fourth quarter of the Financial Year 2013-14, furnished on 31.03.2015. The petitioner claims that in terms of Section 42 of the Delhi Value added Tax Act, 2004 (hereafter `the DVAT Act'), it is entitled to interest on the said amount of Rs.54,58,897/- with effect from 01.06.2015, that is, two months after filing the revised return.
FACTUAL CONTEXT
2. The petitioner is a limited company engaged in the business of development of the infrastructural sector and was awarded civil construction works for various projects in Delhi, namely, Mangolpuri DMSW Project, Narela Power Project, DSIIDC Residential Flats Project, Bawana Power Projects, and Najafgarh Drain Project, to name a few.
3. For the purposes of complying
The main legal point established is that the refund under the DVAT Act should be processed within the stipulated period, and interest is payable from the date the refund was due to be paid.
The main legal point established in the judgment is that the right to interest on a refunded amount accrues to the assessee on the date specified in Section 38(3)(a)(ii) of the Delhi Value Added Tax ....
State authorities are mandatorily required to pay interest on delayed tax refunds at the prescribed rate once the statutory limit for processing passes. Procedural failures in notification or record-....
Provision of law providing for interest on delayed payment of refund would apply to only those cases that fall under the purview of section 40(1) of the VAT Act and to no other. That is the plain eff....
Adherence to time limits for processing refunds and conditions for withholding refunds under Section 38 of the DVAT Act.
In tax matters, entitlement to interest on delayed refunds, including on interest accrued, is affirmed, highlighting the principle that overdue amounts accrue additional interest.
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