Automatic interest on delayed appellate refunds follows the statutory period expires under sales tax refund provisions

Refund under the Andhra Pradesh General Sales Tax Act became payable automatically on the appellate order, and the assessing authority was required to return it without any separate claim. Where the refund was not granted within six months from that order, section 33-F mandated simple interest at 12% per annum on the delayed amount. Because the principal refund was released only after the statutory six-month period had expired, interest accrued for the period of delay until actual payment. The legal position applied was that interest on a delayed appellate refund follows automatically from the statutory scheme.

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Issues: Whether the assessee was entitled to statutory interest on the refund amount for the period beyond six months from the appellate order under the refund provisions of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: Section 33-B provides that where refund becomes due as a result of an order passed in appeal or other proceeding, the assessing authority must refund the amount without requiring any separate claim. Section 33-F creates a corresponding liability to pay simple interest at twelve per cent per annum where such refund is not granted within six months from the date of the appellate order. The Supreme Court's order necessitated refund, and the principal amount was returned only after the statutory six-month period had expired. The statutory scheme therefore compelled payment of interest for the delay until actual refund.

Conclusion: The assessee was entitled to interest on the delayed refund from the expiry of six months after the appellate order until the date of actual refund.

Ratio Decidendi: Where refund arises from an appellate order and is not granted within the statutory period, interest becomes payable automatically under the refund provisions without any separate claim by the assessee.

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