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2016 (7) TMI 941 - HC - VAT and Sales TaxFailure of the Department to make refunds in terms of Section 38 of the DVAT Act - Held that:- Not only is the dealer getting the refund far beyond the time period specified under Section 38 of the DVAT Act but the Department is ending up paying far more interest on the refund amount than what is permissible or contemplated in terms of Section 38 of the DVAT Act. There has to be some accountability fixed within the Department for the lapses on part of those processing refund application resulting in such unnecessary payment of interest beyond what is permissible. This is an additional reason why the Court refuses to countenance the so-called 'fail-safe' system devised by the Department for staggering the release of refund of payment once a refund application has been processed, verified and found to be in order. As far as the present petition is concerned, Mr. Narayan, on instructions states that the refund amount due together with interest will be released to the Petitioner through ECS on or before 26th July 2016. On the basis of the said assurance, the petition is disposed of with liberty to the Petitioner to revive it if the refund is not received within the time assured. A copy of this order be delivered through a Special Messenger to the Commissioner, VAT, so that appropriate instructions can be issued to ensure that the processing of refund applications is not delayed and that the time limits specified under Section 38 of the DVAT Act are strictly adhered to
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