Refund interest under Goa VAT law runs from the statutory trigger, not from administrative sanction under Rule 30.

Section 33(2) of the Goa Value Added Tax Act, 2005 fixes interest on refundable tax by reference to the refund order or the date of receipt of a refund application, and the 90-day period runs from that statutory trigger. Rule 30 of the Goa Value Added Tax Rules, 2005 governs administrative approval for disbursement but does not delay the statutory liability to pay interest. Applying strict construction of fiscal legislation, the provision cannot be extended by implication to make sanction under Rule 30 the starting point for interest. Interest was therefore payable after expiry of 90 days from the assessment order or refund application, as applicable.

---

---

Issues: Whether interest under Section 33(2) of the Goa Value Added Tax Act, 2005 on refundable tax becomes payable from the date of the assessment order or refund application, or only from the date of sanction under Rule 30 of the Goa Value Added Tax Rules, 2005.

Analysis: Section 33(2) is a special provision governing payment of interest on refundable amounts. It fixes the starting point of the 90-day period by reference to the date of the refund order under the Act, or the date of receipt of an application for refund under Section 10(3), and does not refer to the date of sanction under Rule 30. Rule 30 regulates the administrative procedure for obtaining approval before actual disbursement, but it does not postpone the statutory liability to pay interest. Applying strict construction of fiscal legislation, the provision cannot be expanded by implication, and the statute contains no language making sanction under Rule 30 the trigger for interest.

Conclusion: Interest under Section 33(2) became payable from the expiry of 90 days from the assessment order or refund application, as applicable, and not from the date of sanction under Rule 30. The claim for interest was therefore accepted in favour of the assessee.

---