Statutory interest on tax refunds remains payable despite departmental revision withdrawal under the monetary-limit litigation policy.

Statutory interest on a tax refund remains payable under Section 56 of the Rajasthan Sales Tax Act, 1994 when the refund follows withdrawal of a departmental revision under the monetary-limit litigation policy. Every refundable amount carries interest at fifteen per cent per annum from the date of deposit, and the provision does not permit interest to be withheld because the underlying litigation ended through policy-based withdrawal. The assessee is therefore entitled to interest on the refunded amount.

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Issues: Whether statutory interest is payable on the tax refund released after withdrawal of the departmental revision under the monetary-limit litigation policy.

Analysis: Section 56 of the Rajasthan Sales Tax Act, 1994 provides that every refundable amount shall carry interest at fifteen per cent per annum from the date of its deposit. The refund was admittedly released following withdrawal of the departmental revision, but without interest. The statutory language imposed an unequivocal obligation to pay interest and did not permit withholding it merely because the underlying litigation ended through withdrawal under the State litigation policy.

Conclusion: Statutory interest on the refunded amount is payable to the assessee in accordance with Section 56 of the Rajasthan Sales Tax Act, 1994.

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