Refund with interest on reduced estate duty assessment applies to pending proceedings when statutory conditions are met.

A beneficial refund-with-interest provision applied to a pending estate duty matter where a High Court reference resulted in reduction of the assessment. Section 64(7) was held to require only a reference under section 64(1) and a consequent reduction in assessment; it was not confined to assessments initiated after the amendment. Once those conditions were met, the right to refund with interest accrued, and the Controller had discretion only over the rate of interest, not to refuse interest altogether. The assessee was therefore entitled to refund of the overpaid estate duty with reasonable interest.

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Issues: Whether interest was payable on the amount overpaid towards estate duty when the assessment was reduced as a result of a reference to the High Court, even though the assessment proceedings had begun before the amendment introducing section 64(7).

Analysis: Section 64(7) required only two conditions for the grant of refund with interest: a reference to the High Court under section 64(1) and a reduction of the assessment as a result of that reference. The provision did not limit its operation to assessments initiated after its commencement. The right to refund with interest accrued when the High Court reduced the assessment, and the Controller had discretion only as to the rate of interest, not to refuse interest altogether. As the provision was introduced during the pendency of the proceedings, it had to be given effect in the pending matter.

Conclusion: Interest was payable on the overpaid estate duty, and the refusal to grant it was in law and against the assessee.

Final Conclusion: The assessee was entitled to refund of the overpaid estate duty together with reasonable interest under section 64(7), and the writ petition was allowed with costs.

Ratio Decidendi: A beneficial refund-with-interest provision applies to pending proceedings where the assessment is reduced on a High Court reference, and the authority cannot deny interest when the statutory conditions for refund are satisfied.

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