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2007 (7) TMI 581 - HC - VAT and Sales TaxRight to payment of interest on refund - Held that:- In the present case, once the Tribunal has directed payment of refund, vide order dated April 25, 2006, the only requirement on the part of the assessee-petitioner was to move an appropriate application before the Assessing Authority for the refund of the amount. Two applications were filed by the assessee-petitioner on May 15, 2006 (P2 and P3). The period of 90 days as provided by rule 35(1)(b) of the Rules came to an end on August 15, 2006. However, it is conceded position that the payment has been made in respect of the assessment year 2000-01, amounting to ₹ 46,58,324 on June 29, 2007 and in respect of the assessment year 2001-02, amounting to ₹ 49,08,600 on May 30, 2007. Therefore, there is apparent delay in making the payment of refund and the assessee-petitioner is entitled to interest at the rate of 12 per cent per annum for the first month of delay and at the rate of 18 per cent per annum for the following months. Writ petition is allowed. The Excise and Taxation Officer-cum-Assessing Authority, Sonepat-respondent No. 2 is directed to pay interest to the assessee-petitioner for the delayed payment of refund. The interest shall be calculated at the rate of 12 per cent per annum in respect of delay for the first month of delay and at the rate of 18 per cent per annum in respect of delay caused for the subsequent months.
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