Statutory refund claims must be heard and decided in time, with delayed refund interest considered under the governing provision.

Where a statutory refund claim is pending, the competent authority must take it up, afford the claimant a reasonable opportunity of hearing, and decide the request within the time fixed. The refund application was not decided on merits; instead, the court required the assessing authority to consider the excess tax payment claim in accordance with law. The associated claim for interest on delayed refund was also directed to be examined under the governing refund and interest provision, including the statutory mandate in Section 89(4) of the KVAT Act. The document therefore records procedural directions for consideration of refund and interest, not a substantive determination of entitlement.

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Issues: Whether the petitioner's claim for refund of excess tax and consequential interest required immediate grant or first consideration by the assessing authority.

Analysis: The assessment orders showed excess tax payment and the petitioner had already moved a refund request. The Court noted the statutory mandate under Section 89(4) of the KVAT Act concerning interest on delayed refund and directed the respondent to take up the refund claim, afford a reasonable opportunity of hearing, and pass orders within the stipulated time. The claim for interest was also directed to be considered in the light of the statutory provision.

Conclusion: The refund and interest claims were not decided on merits and were left to be considered by the competent authority in accordance with law.

Final Conclusion: The writ petition was disposed of by directing consideration of the refund request and the associated interest claim within the time fixed by the Court.

Ratio Decidendi: Where a statutory refund and interest claim is pending, the authority must consider the request in accordance with the governing refund and interest provision after affording a reasonable opportunity of hearing.

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