Court rejects challenge on VAT refund interest calculation, citing appeal option under Section 42

The Court declined to intervene in a challenge to an order calculating interest on a VAT refund amount, citing the availability of an appeal under Section 42 of the Act. The petitioner argued that the interest was incorrectly calculated, referencing a previous judgment directing the refund with interest. The respondent contended that the impugned order was appealable and that there was no specific direction on interest in the previous judgment. The Court noted the availability of an alternative remedy and disposed of the writ petition accordingly.

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Issues:
Challenge to order calculating interest on VAT refund amount.

Analysis:
The writ petition challenged an order dated 29th August, 2019, regarding the calculation of interest on a VAT refund amount. The petitioner contended that the interest was incorrectly calculated by the respondents. It was highlighted that a previous writ petition, W.P.(C) 7842/2018, was allowed by the Court on 7th August, 2019, directing the refund of the amount under the Delhi Value Added Tax, 2004, along with interest under Section 42 of the Act. The petitioner argued that the Additional Commissioner did not properly appreciate the interest calculation as directed in the previous order. The respondent, however, argued that the impugned order was appealable under Section 42 of the Act, and there was no specific direction in the previous judgment to pay a particular amount of interest on the refund. The respondent asserted that the interest was calculated at 6% for the relevant period, amounting to Rs. 1,67,98,822. The Court noted that the dispute regarding interest calculation was appealable under Section 42 of the Act, and since an alternative remedy was available, the Court declined to intervene under Article 226 of the Constitution of India. Consequently, the writ petition was disposed of based on the above observations.

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