Automatic sales tax refund after appellate order carries statutory interest on delayed payment

Under section 33-B of the Andhra Pradesh General Sales Tax Act, 1957, refund arising from an appellate order must be made by the assessing authority without requiring a separate claim, and Rule 43 obliges compliance with the Tribunal's order within the prescribed time after communication of the authorisation. If the refund is not made within that period, section 33-F attracts liability to pay simple interest at 12 per cent per annum from the statutory commencement date until payment. The effect is that the refund follows the appellate determination automatically, and delayed payment carries statutory interest.

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Issues: Whether, after the Sales Tax Appellate Tribunal allowed the assessee's appeal and held the sale to be exempt, the assessing authority was bound to grant refund without any further claim and whether interest became payable for delayed refund.

Analysis: Under section 33-B of the Andhra Pradesh General Sales Tax Act, 1957, refund arising from an appellate order is to be made by the assessing authority without requiring a separate claim. Rule 43 of the Andhra Pradesh General Sales Tax Rules, 1957 obliges the assessing authority to give effect to the Tribunal's order and refund the amount within the prescribed time after communication of the authorisation. As the refund was not made within that period, section 33-F of the Act attracted liability to pay simple interest at 12 per cent per annum from the statutory commencement date until payment.

Conclusion: The refund was payable without a fresh application, and the respondents were liable to pay interest for the delayed refund.

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