Compensatory interest on delayed sales tax refunds applies even where the refund arises under a concession scheme.

Interest is payable on a delayed sales tax refund under section 32 of the Assam General Sales Tax Act, 1993 where the refund is not made within ninety days. The provision is compensatory, intended to offset loss from late payment of money due, and its operation is not excluded merely because the refund arises under the Assam Industries (Sales Tax Concession) Scheme, 1997. Since the scheme adopts the statutory refund machinery, delay in granting the refund attracts the statutory consequence of interest. A restrictive reading would defeat the plain language and object of the refund provision.

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Issues: Whether interest is payable under section 32 of the Assam General Sales Tax Act, 1993 on delayed refund granted under the Assam Industries (Sales Tax Concession) Scheme, 1997.

Analysis: Section 32 provides for simple interest where a refund due under section 30 is not made within ninety days. The provision is compensatory in nature and is intended to offset the loss caused by delay in payment of money due. The fact that the refund arises under a concession scheme does not exclude the operation of section 32, because the scheme adopts the statutory refund machinery and the delay in making the refund attracts the statutory consequence of interest. A restrictive construction would defeat the plain language and object of the provision.

Conclusion: Interest was payable on the delayed refund, and the rejection of the claim for interest was unsustainable.

Ratio Decidendi: Where a refund due to a dealer is delayed beyond the statutory period, interest payable under the refund provision is compensatory and applies even if the underlying refund entitlement arises from a concession scheme rather than an ordinary assessment order.

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