Delayed tax refund attracts interest where unpaid refund persists, with interest running from a specified date until realisation.

Interest was directed on an unpaid VAT refund because the refund remained pending despite the statutory framework governing repayment. On the peculiar facts, the Court held that continued non-compliance justified interest at 6% from 26.04.2023 until realisation, thereby securing the assessee's entitlement to compensation for delayed refund. The earlier order relied upon by the parties was distinguished, and the refund liability was maintained with the additional direction for statutory interest.

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Issues: Whether interest was payable on the refund amount under the Jharkhand Value Added Tax Act, 2005, and from what date such interest should run.

Analysis: The dispute centred on the delayed handling of the refund claim and the effect of the statutory framework governing refund and interest. The Court distinguished the earlier order relied upon by the parties and took note of the continuing lapse in compliance. In the peculiar facts, it found that justice required payment of interest on the refund amount at 6% from 26.04.2023 until realisation.

Conclusion: Interest on the refund was directed to be paid at 6% from 26.04.2023 till the date of realisation, in favour of the assessee.

Final Conclusion: The refund liability was upheld with an additional direction for statutory interest, and the special leave petition was disposed of on that basis.

Ratio Decidendi: Where refund remains unpaid in the peculiar facts of the case, the Court may direct interest on the refund amount from a specified date until realisation.

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