Interest on delayed rebate release follows when sanctioned refund is withheld and later paid after judicial direction.

Delayed release of a sanctioned rebate/refund attracts interest where the amount was not actually paid on time and was later released only after the High Court set aside the recovery and directed payment. The rebate had been appropriated against alleged dues during a period when the underlying demand was not stayed, but once that recovery was overturned and the amount was released, the delay became compensable. The Tribunal also applied its earlier decisions in the same matter, recognising the principle governing interest on delayed refund payments, and treated denial of interest as unsustainable.

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Issues: Whether the appellant was entitled to interest on delayed release of rebate/refund amount that was initially sanctioned, appropriated towards dues, and later released pursuant to the High Court's direction.

Analysis: The rebate amount had been sanctioned and then adjusted against alleged dues during a period when the stay on the underlying demand was not in force. The High Court subsequently set aside the recovery and directed release of the amount, which was complied with on 10.12.2012. Since the sanctioned rebate was not actually paid when due and was released only after delay, the appellant was held entitled to interest on the delayed payment. The Tribunal also followed its own earlier decisions in the appellant's case, which had applied the principle governing payment of interest on delayed refund.

Conclusion: The appellant was entitled to interest on the delayed rebate amount, and the denial of interest was unsustainable.

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