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2019 (5) TMI 1450 - JAMMU AND KASHMIR HIGH COURTDelay in sanction of refund - Relief with regard to payment of interest @ 24% per annum - HELD THAT:- While dealing with the issue of interest Section 55(3) is relevant, which prescribes that the refund has to be made within a period of 120 days from the date of such sales, Admittedly, the date of sale and the payment of vat tax, are the factors which would be in the knowledge of the department. The refund, therefore, should have certainly been made within a period of 120 days from the date of sales, inasmuch as, element of sale necessarily is accompanied with an element of deposit of tax. Equally clear is the provision with regard to the rate of interest. If the payment is delayed by three months beyond 120 days prescribed, it has to be @ 24% per annum simple interest - Admittedly, the rate of interest in the present case, which would apply is @ 24 %. The order impugned also does not in so many words clearly reflect the rate, which has been applied for purposes of calculating the amount, which the petitioner is held entitled to receive. Mr. Amit Gupta, learned counsel for the respondents stated that the rate applied was @ 18%. The order impugned dated 22.08.2017, in so may ways is not totally in accord with the obligation cast upon the respondents in terms of Section 55 of the Act in regard to the determination of the amount, as also the rate of interest applicable for payment of interest - Impugned order set aside - appeal disposed off.
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