Interest on excess security deposit upheld where retained dealer funds had to be refunded with compensation for delay.

Excess security deposited by a dealer for issuance of form-31 was treated as money wrongly retained, and interest was held payable on the excess amount at 15% from the date of deposit until refund. The Tribunal's direction to apply that rate was supported by the principle governing refund of amounts unlawfully retained, and the order was confirmed.

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Issues: Whether the Trade Tax Tribunal was justified in directing payment of interest at a different rate on the excess amount deposited by the dealer as security for issuance of form-31.

Analysis: The security amount deposited by the assessee was found to be excess. On that basis, the amount was held to carry interest at the rate of 15% from the date of deposit until the date of refund. The view was supported by the principle affirmed by the Supreme Court in relation to refund of money wrongly retained.

Conclusion: The direction to pay interest on the excess security deposit was upheld and the Tribunal's order was confirmed.

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