Refund under VSV Act and interest entitlement confirmed; 5% simple interest awarded on delayed refund.

Refund under the VSV Act was held to be a debt owed by the revenue, and absence of any statutory bar permits interest on delayed refunds; consequently the petitioner is entitled to interest for delay. The court applied the principle that retention of public money without right attracts an obligation to repay with interest and rejected departmental technical delay as a defence. The duplicate PAN objection had been resolved earlier and the required noobjection affidavit was timely furnished, so no delay arose from heirs. The revenue was directed to pay simple interest at 5% per annum from the date falling after ninety days from determination until payment, payable within eight weeks.

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Issues:
1. Refund sought under the Direct Tax Vivad Se Vishwas Act, 2020 (VSV Act) for two assessment years.
2. Payment of interest on delayed refund.
3. Dispute over interest payment on refunds under VSV Act.
4. Delay in refund due to deceased assessee having two PAN numbers.
5. No objection Affidavit submission delay.
6. Technical issue at the Central Processing Centre (CPC) causing delay in refund.

Analysis:
1. The petitioner filed a writ petition seeking a refund under the VSV Act for two assessment years, along with interest on the delayed payment. The final certificate for the refund was issued, but the petitioner claimed interest due to the delay in payment.

2. The petitioner argued that interest is a form of compensation for the unauthorized use of collected money, citing the Supreme Court judgment in Union of India vs. Tata Chemicals Limited, (2014) 6 SCC 335. The revenue, on the other hand, contended that no interest is payable on refunds under the VSV Act.

3. The Court held that the refund due to the assessee is a debt owed by the revenue, and there is no provision in the VSV Act prohibiting the payment of interest on delayed refunds. The Act does not authorize the revenue to delay or withhold refund payments.

4. Regarding the deceased assessee having two PAN numbers, the Court noted that the issue was previously resolved by a Division Bench directing the refund application to be processed based on one PAN number, eliminating any delay due to this reason.

5. The delay in submitting the No Objection Affidavit by the surviving legal heir was deemed reasonable as it was furnished promptly after the request, indicating no undue delay on the petitioner's part.

6. The technical issue at the Central Processing Centre (CPC) was considered irrelevant to benefit the Tax Department, and the Court emphasized the obligation to refund money received without right, entitling the petitioner to interest on the delayed refund amount.

7. Consequently, the Court directed the revenue to pay simple interest at 5% per annum on the delayed refund amount from 05th July, 2021 (beyond 90 days from the determination date) till the payment date of 11th February, 2022, to be completed within eight weeks, thereby disposing of the writ petition and related application.

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