Admitted statutory refund cannot be withheld for administrative record-tracing delays, and statutory interest follows on late payment.

An admitted refund under Form P could not be withheld on the basis of administrative difficulty in tracing records after transfer of assessment. The Court held that internal verification issues do not defeat a statutory refund claim that is otherwise undisputed, and once the amount remains unpaid beyond the prescribed period, liability to pay statutory interest also arises under Section 42(5) of the Tamil Nadu Value Added Tax Act, 2006. The petitioner was accordingly entitled to immediate release of the refund amount together with statutory interest.

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Issues: Whether the petitioner was entitled to release of the admitted refund amount together with statutory interest under Section 42(5) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The refund due under Form P was not disputed in the counter affidavit. The only explanation offered for non-payment was administrative difficulty in tracing records after transfer of assessment. The Court held that such a ground could not defeat an admitted statutory refund claim. Since the excess amount had remained unpaid beyond the prescribed period, the statutory liability to pay interest also followed.

Conclusion: The petitioner was held entitled to immediate payment of the refund amount along with statutory interest, and the request was accepted in favour of the petitioner.

Ratio Decidendi: An admitted statutory refund cannot be withheld on the ground of internal administrative verification, and delay beyond the statutory period attracts interest under the governing refund provision.

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