Case Law Details
Indian Bullion Market 0association Limited Vs Commissioner of Value Added Tax (Delhi High Court)
Introduction: The Indian Bullion Market Association Limited recently took legal action against the Commissioner of Value Added Tax regarding the non-payment of interest on a VAT refund. The Delhi High Court issued a directive to consider the interest claim under Section 42 of the DVAT Act within two weeks.
Detailed Analysis: The petitioner sought the refund of an amount totaling Rs 1,40,43,039, along with accrued interest. Despite the refund being credited to the petitioner’s account, no interest was paid. The petitioner’s counsel argued for the rightful payment of interest as per Section 42 of the Delhi Value Added Tax Act, 2004.
In response, the Delhi High Court disposed of the petition by instructing the respondent to evaluate the petitioner’s entitlement to interest within two weeks. If interest is found to be due under Section 42, it must be promptly credited to the petitioner’s account. Conversely, if authorities deem the interest unjustified, they must issue a detailed explanation within the same timeframe.
The court granted the petitioner the option to pursue further legal recourse if dissatisfied with the decision. This judgment underscores the importance of adhering to statutory provisions concerning interest payments on tax refunds and ensures timely resolution of disputes.
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