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2015 (6) TMI 541 - HC - VAT and Sales TaxInterest on refund claim - Doctrine of merger - compensatory measure - Whether the Tribunal has erred in holding that dealer is entitled to interest under section 54[1][aa] on refund arising from appellate order - Held that:- principles of compensatory measure may apply if the taxing statute is silent about the said aspect. The Legislature may control quantification of interest or the entitlement of interest on refund subject to meeting with the test of constitutional provision. But, when the legislature is silent about entitlement of interest on refund of the tax amount already paid by the citizen, the interest can be considered by way of a compensatory measure. General principles for awarding compensation to the Assessee for the delay in receiving monies properly due to it is not disapproved by the Larger Bench of the Apex Court in the case of Commissioner of Income Tax, Gujarat Vs. Gujarat Fluoro Chemicals [2013 (10) TMI 117 - SUPREME COURT] - observation made in case of Gujarat Fluoro Chemicals (supra) is a complete answer to the contention that the interest can be awarded even if not expressly barred by the statute or that the taxing statute is silent about the same. Question raised could no more be considered as substantial question of law since such aspect is already covered by the principles of doctrine of merger well settled in the system of administration of justice and also in the abovereferred decision of the Apex Court as well as of this Court. - no substantial question of law would arise for consideration in the present Tax Appeals - Decided against Revenue.
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