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        Case ID :

        2023 (5) TMI 1184 - HC - GST

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        Interest on delayed scheme benefits is unavailable absent express provision or unauthorized withholding Delay in disbursement of budgetary support under an industrial incentive scheme did not by itself create a right to interest. The scheme treated the ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Interest on delayed scheme benefits is unavailable absent express provision or unauthorized withholding

                              Delay in disbursement of budgetary support under an industrial incentive scheme did not by itself create a right to interest. The scheme treated the benefit as a concession to eligible units, not a claim enforceable as of right, and it contained no provision for interest on delayed release. Because the release was delayed due to an acute shortage of funds and there was no showing of deliberate or unauthorized withholding, interest was not payable. The governing principle is that interest on delayed release of a statutory or policy benefit can be awarded only where the scheme expressly allows it or the delay is unjustified and unauthorized.




                              Issues: Whether the petitioner was entitled to interest on the delayed disbursement of budgetary support sanctioned under the scheme.

                              Analysis: The benefit under the scheme was a concession or incentive extended to eligible industrial units to offset the loss of area-based exemptions, and was not a payment claimable as of right. The sanctioned amount had not been withheld without reason: the disbursement was delayed because the commissionerate faced acute shortage of funds and release took place when funds became available. The scheme contained no provision for payment of interest for delay in actual release of the benefit, and no deliberate or unauthorized withholding was shown.

                              Conclusion: The petitioner was not entitled to interest on the delayed payment.

                              Final Conclusion: The petition failed on the sole substantive claim, and the delay in disbursement did not create a right to interest in the absence of an enabling provision under the scheme.

                              Ratio Decidendi: Interest on delayed release of a statutory or policy benefit cannot be awarded unless the governing scheme expressly provides for it or the delay is shown to be unauthorized and without justification.


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                              ActsIncome Tax
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