Statutory interest on delayed tax refunds follows once refund liability is finalised and payment is made late.

Statutory interest was payable on a delayed tax refund once the assessment order had determined the refund due and the assessment had attained finality. Section 54 of the Gujarat Sales Tax Act, 1969 was applied to require simple interest at the prescribed rate on refund amounts released belatedly, and the delayed payment therefore attracted the statutory liability to pay interest. The objection that an alternative remedy was available did not justify denying relief or sending the petitioner to another forum because the entitlement followed from clear statutory and factual .

---

---

Issues: Whether the petitioner was entitled to statutory interest on delayed refund of tax and whether the availability of an alternative remedy justified of relief.

Analysis: The refund had been found due under the assessment order, but its release was delayed for several years. Section 54 of the Gujarat Sales Tax Act, 1969 provides for simple interest at the prescribed rate where refund becomes due by virtue of an assessment order. Once the assessment had attained finality and the refund was admittedly paid belatedly, the statutory liability to pay interest followed. In view of these clear facts, the existence of an alternative remedy did not warrant relegating the petitioner to another forum.

Conclusion: The petitioner was entitled to statutory interest on the delayed refund, and the objection based on alternative remedy failed.

---