Refund interest fixed by writ order prevailed over statutory interest where deposit was made under court direction.

Money deposited pursuant to a writ court direction that expressly conditioned refund on payment of interest at 18% per annum had to be refunded on that basis, because the obligation arose from the judicial order and not merely from the sales tax statute. The State, having taken the benefit of the deposit and retained the amount, could not restrict the refund to the lower statutory interest rate under section 14 of the Orissa Sales Tax Act, 1947. The specified interest in the writ order governed the refund from the date of deposit.

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Issues: Whether interest on the refundable amount was governed by the earlier writ order of the High Court directing refund with interest at 18% per annum, or only by section 14 of the Orissa Sales Tax Act, 1947.

Analysis: The refund obligation arose from an interim direction made in writ jurisdiction under articles 226 and 227 of the Constitution, not under the sales tax statute. The order requiring deposit expressly stated that, if the assessee succeeded, the amount would be refunded with interest at 18% per annum. Since the State took benefit of that direction and retained the deposited amount, it could not later contend that only the statutory rate under section 14 controlled the refund. Where the court itself conditions the deposit on refund with specified interest, that condition governs the refund.

Conclusion: The assessee was entitled to refund with interest at 18% per annum from the date of deposit, and not merely to the interest available under section 14 of the Act.

Ratio Decidendi: When money is deposited pursuant to a writ court order that expressly conditions refund on payment of specified interest, the refund must be made in accordance with that judicial direction and not by resort to a lesser statutory interest provision.

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