Prospective refund amendment and statutory interest on delayed provisional refund upheld under the unamended VAT framework.

An amendment enlarging the refund period under section 51(4) of the Maharashtra Value Added Tax Act operates prospectively unless the legislature clearly indicates retrospectivity, so the earlier unamended framework governed the relevant assessment periods. Under the conjoint operation of sections 51, 52 and 53, delay in granting a provisional refund attracted statutory interest, and the Tribunal was in directing computation of the delay and payment of interest. The Revenue's challenge accordingly failed, leaving intact the direction to grant interest on the delayed provisional refund for the relevant period.

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Issues: Whether the amended time-limit under section 51(4) of the Maharashtra Value Added Tax Act, 2002 applied retrospectively to deny interest on delayed provisional refund for the earlier assessment period, and whether the assessee was entitled to interest on such delayed refund under sections 51 and 53 of the Act.

Analysis: The amendment to section 51(4) enhancing the refund period to 18 months was held to be prospective and not retrospective. For the relevant assessment periods, the unamended statutory framework applied. On a conjoint reading of sections 51, 52 and 53, delay in granting provisional refund attracted interest, and the Tribunal was correct in directing computation of the delay and payment of interest. No substantial question of law arose on the facts of the case.

Conclusion: The assessee was entitled to interest on delayed provisional refund, and the Revenue's challenge failed.

Final Conclusion: The dismissal of the appeals left intact the Tribunal's direction to grant interest on delayed provisional refund for the relevant period.

Ratio Decidendi: An amendment enlarging the statutory period for refund operates prospectively unless the legislature clearly provides otherwise, and delay in refund under the applicable unamended provision carries interest where the statute so mandates.

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