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2019 (11) TMI 170 - HC - VAT and Sales TaxEntitlement to Interest on amount retained by the State Commercial Tax Authorities between the period 23.11.2005 and 29.07.2011 - TNGST Act - Section 24(4) of the Act - HELD THAT:- Admittedly, the refund has been determined and paid over to the petitioner herein both within the timelines set out by the Supreme Court and the provisions of Section 24(4) of the Act - In my considered view, it is only if the said timelines had been breached that interest would statutorily, be payable. The provisions of Section 24(4) of the Tamil Nadu General Sales Tax Act specifically provide for (i) the quantification of refund (ii) the stage of such quantification, being final assessment/revision assessment/appellate, revisional, review order, (iii) refund of tax determined in such final assessment or order as in point (ii) above, (iv) prescription of a timeline for issue of such refund, being 90 days from the date of assessment/appellate order reaching finality (v) provision for interest in the event of breach of the aforesaid scheme. In the admitted facts and circumstances of the present case, the assessee finds no support from the provisions of Section 24(2) of the Act. In SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [2006 (1) TMI 55 - SUPREME COURT], the Supreme Court considered a prayer for grant of interest for delay in effecting refund pursuant to an appellate order. After analysing the provisions of Sections 244 and 244A of the Income Tax Act 1961, the Bench concluded that the statute did not provide for the payment of interest as prayed for. However on general principles the Bench held that the assessee ought to be compensated for the inordinate delay in receiving money legally due to it, in that case, seventeen long years. Thus the Department was directed to pay interest at the rate of 9% for part of the period when the petitioner was deprived of the capital. Petition dismissed.
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