Delayed tax refund carries statutory interest once the refund claim crystallises and payment is not made on time.

A taxpayer was entitled to interest on a delayed refund where the refund claim had already crystallised and the principal amount was being processed for release. Section 33F of the Andhra Pradesh General Sales Tax Act, 1957 requires interest at the prescribed rate on delayed refunds, and the interest computation should be made when the principal refund is released. Because the statutory right to interest arose from the delay itself, there was no basis to deny the interest component, and the authorities were directed to compute and pay it within the time allowed.

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Issues: Whether the petitioner was entitled to interest on the delayed refund under Section 33F of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The refund claim had already crystallised in favour of the petitioner, and the principal refund amount was being processed for release. Section 33F of the Andhra Pradesh General Sales Tax Act, 1957 mandates payment of interest on delayed refund at the prescribed rate, and the computation of interest ought to have been undertaken along with the release of the principal amount. Since the statutory entitlement to interest arose from the delay in making the refund, there was no basis to deny the petitioner the interest component.

Conclusion: The petitioner was held entitled to interest on the delayed refund, and the respondents were directed to compute and release the interest amount within the time granted by the Court.

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