Statutory tax refund cannot be withheld for administrative inconvenience, with the court directing prompt payment and interest

A delayed VAT refund under the Delhi Value Added Tax Act, 2004 attracted statutory interest, and administrative inconvenience could not justify withholding payment. The Delhi High Court rejected the Revenue's reliance on the absence of the concerned officers due to election duty, holding that internal deployment issues do not suspend the obligation to release a statutory refund or stop further interest from accruing. The Commissioner was directed to ensure prompt disbursal of the refund within the time fixed by the Court, reinforcing the assessee's right to timely payment with interest.

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Issues: Whether the refund due to the assessee could be withheld on the ground that the concerned VAT officer and supervisory officers were on election duty, and whether the Commissioner could be directed to ensure immediate payment of the refund.

Analysis: The refund had remained unpaid for a prolonged period, attracting statutory interest under Section 42(1)(a) of the Delhi Value Added Tax Act, 2004. The Court rejected the explanation that departmental officers were unavailable due to election duty, holding that such administrative inconvenience could not justify continued non-payment of a statutory refund or the accumulation of further interest liability. The Commissioner was therefore directed to personally ensure disbursal of the refund within a fixed time.

Conclusion: The issue was decided in favour of the assessee. The respondents were required to issue the refund promptly, and the excuse of election duty was not accepted.

Final Conclusion: The order enforces the statutory obligation to release delayed tax refund and prevents the Revenue from relying on administrative arrangements to defeat the assessee's right to payment with interest.

Ratio Decidendi: A statutory refund cannot be denied or further delayed on the basis of internal administrative difficulties, and the competent authority must ensure timely payment of the amount due.

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