Delayed refund interest must run from the date of sale under the refund statute, not from later approval.

Section 55 of the Jammu & Kashmir VAT Act, 2005 fixes the date of sale as the reference point for refund of tax on zero-rated sales and requires refund within 120 days, with simple interest at 18% per annum for delay and 24% per annum where the delay exceeds three months. On that statutory structure, delayed refund interest must be computed from the date of sale, not from a later administrative approval date, and the applicable statutory rate must be applied accordingly. The refund and interest therefore have to be reworked by reference to the dates and rates mandated by the provision.

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Issues: Whether interest on delayed refund under Section 55 of the Jammu & Kashmir Value Added Tax Act, 2005 was payable from the date of sale or only from the date of approval of refund, and whether the rate of interest had to be determined in terms of the statutory mandate under the provision.

Analysis: The refund claim arose from zero-rated sales under Section 55, and the statute required refund within 120 days from the date of sale. The provision also mandated simple interest at 18% per annum for delay, rising to 24% per annum where the delay exceeded three months. The relevant facts of sale and tax payment were within the department's knowledge, so the refund and consequent interest had to be worked out with reference to the statutory period from the date of sale. Calculating interest only from the date of approval of refund was inconsistent with the structure of Section 55(3) and 55(4), and the order also did not correctly reflect the applicable rate.

Conclusion: The petitioner was entitled to have the refund reworked in accordance with Section 55(3) and 55(4) of the Act, with the date of sale treated as the relevant date for computation of interest and the applicable statutory rate applied accordingly.

Ratio Decidendi: Where a refund statute fixes the date of sale as the reference point for refund and interest, interest on delayed refund must be computed from that statutory date and not from a later administrative approval date.

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