Statutory refund delay triggers interest liability, with courts stressing prompt administrative compliance and timely payment obligations.

A statutory sales tax refund withheld beyond the prescribed period attracted liability to pay interest for the delayed period. The Court noted that the principal refund had initially been released without interest, but the delayed compliance was contrary to the refund obligation and required an effective administrative mechanism to ensure timely processing of refund claims. During the pendency of the petition, the refund with interest was paid and the State filed instructions to secure prompt clearance of refund orders. The matter was disposed of after recognising the right to timely refund with interest and the corrective measures undertaken by the State.

---

---

Issues: Whether the petitioner was entitled to refund with interest on delayed refund under the sales tax law.

Analysis: The refund amount had been retained for a period far beyond the statutory period, and the respondents initially released the principal sum without interest. The delay in refund was treated as contrary to the statutory obligation governing refunds, and the Court also took note of the need for an effective administrative mechanism to ensure timely compliance with refund provisions. During the pendency of the petition, the respondents released the refund along with interest and placed on record instructions aimed at ensuring that refund orders are cleared promptly.

Conclusion: The petitioner was entitled to the refund with interest for the delayed period, and the State's subsequent instructions and affidavits were accepted as sufficient to dispose of the matter.

Final Conclusion: The petition was disposed of after recognising the statutory right to timely refund and interest, and after noting the corrective administrative measures undertaken by the State.

Ratio Decidendi: Where a statutory refund is withheld beyond the prescribed period, interest becomes payable and the administration must ensure prompt compliance with the refund obligation.

---