Tarapore & Co. Vs Commissioner of Trade & Taxes & Anr (Delhi High Court)
In a recent judgment, the Delhi High Court addressed the issue of delayed refund under the Delhi Sales Tax Act in the case of Tarapore & Co. vs. Commissioner of Trade & Taxes & Anr. The petitioner sought a refund of Rs. 20,18,729/- along with statutory interest, which was not granted by the department.
1. Refund Order: An assessment order in favor of the petitioner was passed, entitling them to a refund of Rs. 20,18,729/- under Section 16 of the Delhi Sales Tax Act, 1975.
2. Delayed Refund: Despite the assessment order, the refund was not granted to the petitioner until 18.05.2022, and no interest was provided for the delay.
3. Legal Provisions: Section 30(4) of the Act stipulates that if a refund is not made within 90 days from the date of the claim, the person is entitled to interest at 1% per month for the first month and 1.5% thereafter.
4. Petitioner’s Claim: The petitioner argued that since they made the claim within the prescribed time frame, and there was no delay attributable to them, the department should pay interest for the delay.
5. Court’s Decision: The court found in favor of the petitioner, ordering the department to pay interest at 1.5% per month for the period of three years preceding the filing of the petition, until the date of refund disbursal.
