1994 (12) TMI 295

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.... dated July 13, 1994 and the petitioner was given interest at 12 per cent per annum from August 9, 1990 to March 31, 1992 and thereafter at 15 per cent from April 1, 1992. It has also been held that the interest shall be calculated only if the amount is in deposit for a period of one year. 2.. It is the case of the petitioner that he has been granted the interest from August 9, 1990 on the basis of the Circular No. 868-A: CCT/Circular F. 120(M) Tax/CCT, dated February 4, 1992 (annexure 3), and Circular No. 850-E: Circular F. 120 (Misc.) Tax/CCT/Refund 91-500, dated April 30, 1991 (annexure 4). The circulars are not in conformity with the provisions of the Act and particularly, section 23(2) of the Act, thus, cannot be given effect to. Th....

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....ing authority is authorised to make an order of refund to a dealer, any amount of tax paid, by such dealer in excess of the amount due from him under the Act, in the prescribed manner. Sub-section (2) of section 23 provides that the amount refunded to a dealer under the Act shall carry interest at 12 per cent per annum with effect from the date of deposit of the amount. The rate of interest has been enhanced from 12 per cent to 15 per cent under the Act 6 of 1992 with effect from April 1, 1992. 5.. The main controversy is centered around sub-section (2) of section 23. The golden rule of construction is that the words of the statute must prima facie be given their ordinary meaning. Natural and ordinary meaning of the words should not be d....

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....the Act and that interest will be calculated from the date of deposit, which is also an ordinary trade practice. If the interest is to be paid from some other date and not from the date of deposit, that will be deviation from the ordinary trade practice and it is for the respondent to establish special circumstances or in the legal context, the different meaning can be attributed to the words "from the date of deposit ", than its plain and simple meaning. On a plain reading of sub-section (2) of section 23, it is manifest that the interest shall be paid from the date of the deposit of the amount till it is refunded and a rate of interest shall be calculated on the deposit at the rate of 12 per cent or 15 per cent, as the case may be, irr....