Statutory interest on delayed refund accrues automatically, and refund withholding is invalid without strict compliance with prescribed procedure.

Statutory interest on a refundable amount under the A.P. General Sales Tax Act becomes payable automatically once the underlying demand or penalty is set aside and the refund is delayed; no fresh claim by the assessee is required. The Revenue can withhold refund or interest only by passing a valid withholding order under the prescribed procedure, including the required prior approval. In the absence of such an order, refusal to release the refund or interest is unlawful, and the statutory interest must be computed and paid.

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Issues: (i) Whether the assessee was entitled to interest on the refunded amount under section 33F of the A.P. General Sales Tax Act, 1957 after the appeal was allowed; (ii) Whether the Revenue could withhold the interest or refund without passing an order under section 33C of the A.P. General Sales Tax Act, 1957.

Issue (i): Whether the assessee was entitled to interest on the refunded amount under section 33F of the A.P. General Sales Tax Act, 1957 after the appeal was allowed.

Analysis: Once the Tribunal set aside the penalty order, the amount deposited by the assessee became refundable. Section 33F provides for statutory interest on delayed refund and does not make the liability conditional upon a fresh claim by the assessee. The Revenue failed to release the amount within the stipulated period, and the statutory consequence under section 33F followed.

Conclusion: The assessee was entitled to interest on the refunded amount under section 33F.

Issue (ii): Whether the Revenue could withhold the interest or refund without passing an order under section 33C of the A.P. General Sales Tax Act, 1957.

Analysis: Section 33C permits withholding of refund only where the assessing authority, with previous approval of the Deputy Commissioner, passes an order to that effect. No such order was shown to exist. In the absence of a valid withholding order, the Revenue's refusal to pay interest was held to be arbitrary and unjustified.

Conclusion: The Revenue could not withhold the refund or interest without an under section 33C, and the withholding was unlawful.

Final Conclusion: The writ petition succeeded, and the Revenue was directed to compute and pay the statutory interest, with costs, because the delayed refund was not lawfully withheld.

Ratio Decidendi: Statutory interest on a refund becomes payable automatically on delay, and refund or interest cannot be withheld unless the statute's withholding procedure is strictly complied with.

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