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TMI Blog2023 (2) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... issued to the respondent to refund an amount of Rs.59,56,772/-, which the petitioner claims is due for the fourth quarter of the year 2013-14. The petitioner further claims that he is entitled to interest on the said amount which has been outstanding since several years. 2. The petitioner had filed a return claiming a refund of the sum of Rs.59,59,499/- for the fourth quarter of the year 2013-14 on 09.05.2014. Thereafter, it filed a revised return on 15.01.2015 reducing its claim of refund to Rs.59,56,772/-. The petitioner's return was not processed immediately. 3. However, on 19.10.2015, the concerned Value Added Tax Officer (VATO) issued a notice under Section 59(2) of the Delhi Value Added Tax Act, 2004 (DVAT Act). 4. Thereafter, def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Concededly, the return filed by the assessee is required to be considered as an application for refund and the respondent is required to process the same. 12. The said issue was considered by a coordinate bench of this Court in IJM Corporation Berhad v. Commissioner of Trade and Taxes : 2017 SCC OnLine Del 11864. This Court had held that in terms of Section 42 of the DVAT Act, interest would be payable if the refund is not paid within a period of two months of filing of the return. Paragraph 16 and 17 of the said judgment are relevant and read as under: "16. Section 42 relates to interest and sub-section (1) thereof stipulates that an assessee who is entitled to refund shall be entitled to receive, in addition to the refund, simple inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The date when the refund was due would be with reference to the date mentioned in Section 38 i.e. clause (a) to sub-section (3). This would mean that interest would be payable after the period specified in clause (a) to sub-section (3) to Section 38 of the Act i.e. the date on which the refund becomes payable. Two sections, namely, Sections 38(3) and 42(1) do not refer to the date of filing of return. This obviously as per the Act is not starting point for payment of interest." 13. Mr. Rajesh Jain, learned counsel appearing for the petitioner has also pointed out that in terms of the explanation to Section 42 of the DVAT Act, if the delay in granting refund is attributable to the assessee, whether wholly or in part, the said period would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner can be denied interest on the amount of refund which has been unjustifiably withheld, mainly for two reasons. First, that there is no dispute that the petitioner is entitled to the refund and his return was required to be considered as an application for the same. The petitioner was not required to approach or pursue the authorities for its claim for refund of excess tax. Second, that the delay in processing claims for refund is endemic to the DVAT authorities and if the same is considered, the delay on the part of the petitioner approaching this court is not long. 18. The respondent filed an affidavit in compliance with the directions issued by this Court which indicates that the respondent department has collated the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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