Case Law Details
Corsan Corviam Construccion S.A.- Sadhbhav Engineering Ltd. JV Vs Commissioner of Trade & Taxes (Delhi High Court)
The wording of Section 42(1) of DVAT Act is unambiguous. It talks of the two dates i.e. date the refund was due to be paid to the person and ‘until the date’ on which the refund is ‘given’. The word ‘given’ should in the context of the provision mean, the date on which the refund amount is actually received by the Petitioner and not the date simply on which the refund order is issued. As a matter of routine, the Court notes that invariably, the refund amount is not received by an Assessee on the date of issuance of the refund order. That date is usually a later date. In the present case, as already noted, the Respondent has not disputed the fact that the refund amount was in fact received by the Petitioner only on 14th September, 2017.
In that view of the matter, it is held that the Petitioner is entitled to interest on the refund amount issued by the order dated 25th August, 2017 for the period from 11th September, 2015 till 14th September, 2017. The said interest amount calculated in terms of Section 42 read with Rule 34 and 36 of the DVAT Rules will be credited to the Petitioner‟s account not later than 16th August, 2019. It is further directed that if the said amount is not credited by that date, the Respondent will pay the Petitioner Rs.50,000/- as compensation.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. A short issue is involved in this petition regarding the obligation of the Respondent to pay interest on the refund issued to the Petitioner by an order dated 20th August, 2017.
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