Interest on sales tax refund upheld where appellate proceedings led to repayment and excess tax remained retained.

Interest on refund under Section 54(1)(aa) of the Gujarat Sales Tax Act, 1969 was held payable where the refund arose from appellate proceedings, following earlier Division Bench decisions on the same point. The Revenue's attempt to distinguish the facts was rejected because the excess tax had remained with the State until the appellate refund, and no substantial question of law survived on that settled position. The dealer was therefore entitled to interest on the refund, and the Revenue's challenge failed.

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Issues: Whether the dealer was entitled to interest on refund under Section 54(1)(aa) of the Gujarat Sales Tax Act, 1969, where the refund arose from the appellate order.

Analysis: The issue was covered by earlier Division Bench decisions holding that interest is payable under Section 54(1)(aa) on refund arising from an appellate order. The factual distinction sought by the Revenue was not accepted, as the refund in the present case also resulted from the appellate proceedings and the dealer had suffered retention of the excess tax amount. In view of that settled position, no substantial question of law survived.

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

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