Delayed VAT refund must carry statutory interest where excess tax is due and administrative excuses do not justify non-payment.

Refund of excess tax under the Jharkhand Value Added Tax Act, 2005 was found payable, and the authority's prolonged delay was held unjustified. The High Court treated vacancy of office and election-duty deputation as insufficient explanations for non-payment, and applied Sections 52 and 55 to hold that delayed refund attracts simple interest at 6% per annum after the statutory period. It accordingly directed release of the refund with statutory interest by a fixed date, rejecting administrative excuses for further delay.

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Issues: Whether the petitioner was entitled to refund of excess tax with interest for delayed refund under the Jharkhand Value Added Tax Act, 2005.

Analysis: The refund had been granted earlier, the petitioner's application had remained pending for an inordinate period, and the reasons advanced for non-payment, such as vacancy of office and election duty deputation, were held to be unsatisfactory and frivolous. In the light of Sections 52 and 55 of the Jharkhand Value Added Tax Act, 2005, refund of excess tax was payable and delayed refund attracted simple interest at 6% per annum after the statutory period. The Court fixed a time-bound direction for payment and rejected the departmental excuses for further delay.

Conclusion: The petitioner was held entitled to refund of Rs. 6,71,54,829/- together with interest at 6% per annum from the prescribed period, and the authorities were directed to make payment by the stipulated date.

Final Conclusion: The writ petition succeeded on merits and resulted in a mandatory direction for release of the refund with statutory interest.

Ratio Decidendi: Where excess tax refund is statutorily due and delay is unjustified, the refunding authority must pay the refund with the interest prescribed by the Act and cannot avoid payment on administrative excuses.

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