Delayed VAT refund payments attract statutory interest after sixty days, and administrative processing does not suspend liability.

Under the Haryana VAT framework, delayed refund payment attracts simple interest at one per cent per month when the refund is not made within sixty days of the relevant refund order. Section 20(9) and section 20(10) of the Haryana Value Added Tax Act, 2003, read with Rule 41(4) of the Haryana Value Added Tax Rules, 2003, require timely issuance and payment of the refund order, and administrative forwarding or pending revisional proceedings do not suspend that statutory obligation. Interest runs from the expiry of the sixty-day period until actual payment.

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Issues: Whether the petitioner was entitled to interest on delayed payment of refund under the Haryana Value Added Tax Act, 2003 and the Haryana Value Added Tax Rules, 2003.

Analysis: The refund became payable after the assessment order and the rectification order fixed the refund amount. Under section 20(9) and section 20(10) of the Haryana Value Added Tax Act, 2003, refund not made within sixty days attracts simple interest at one per cent per month. Rule 41(4) of the Haryana Value Added Tax Rules, 2003 likewise requires issuance of the refund payment order within sixty days, failing which interest becomes payable. The forwarding of the case for approval and the pendency of revisional proceedings did not displace the statutory liability to pay interest once the refund remained unpaid beyond the prescribed period.

Conclusion: The petitioner was entitled to interest at one per cent per month on the refunded amount from the expiry of sixty days after the relevant refund order until actual payment, and the claim for interest was allowed.

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