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2023 (1) TMI 3 - GUJARAT HIGH COURTInterest on delayed refunds - Refund of only principal amount without interest for the period spanning 2005 till the date to the petitioner under Section 54 of the Gujarat Sales Tax Act, 1969 - whether the respondent is required to be directed to pay the interest from 01.04.2005 till the date of actual refund on the total amount? - HELD THAT:- Learned senior advocate, Mr.Soparkar appearing with learned advocate, Mr.Davavala has pressed into service the order of the First Court in case of ASIAN PAINTS LIMITED VERSUS JP GUPTA, STATE OF GUJARAT [2022 (3) TMI 1472 - GUJARAT HIGH COURT] where the Court has in contempt jurisdiction on dated 28.03.2022 has directed the amount to be refunded - It is thus clear that the First Court directed the amount to be deposited when the challenge before the Apex Court had already been made. The State has accepted this order without a murmur. It is also to note that the case which has been followed for the purpose of seeking the refund, no stay has been granted by the Apex Court and couple of matters are still at a diary stage. In that view of the matter, the request on the part of the petitioner for the interest on the amount of delayed refund deserves to be allowed, following the decision in case of M/s Syngenta Crop Protection Pvt. Ltd. v. State of Gujarat [2018 (4) TMI 1669 - GUJARAT HIGH COURT]. The petitioner thus would be entitled to the interest on the delayed refund at the rate of 6% per annum - It is thus made clear in all the decisions which have been referred to hereinabove that when the doctrine of merger is borne in mind and when the statutory authority allows the appeal of an assessee, he gives legal shape to the contours of the matter which assessing authority should have adopted and therefore, the refund claim of the assessee would essentially arise from the order of assessment. The respondent No.3 is directed to pay interest to the petitioner at the rate of 6% per annum from 13.07.2009 till the date of actual refund on the principal amount of Rs.2,15,80,739/-, and not later than twelve weeks from the date of receipt of a copy of this judgment - petition allowed.
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