2019 (7) TMI 1202

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....7. 2. The admitted facts, as evident from the order granting refund, are that the Petitioner, a registered dealer under the Delhi Value Added Tax Act, 2004 (DVAT Act), filed a return claiming refund on 10th July, 2015. The tax period for which refund was claimed was the fourth quarter of 2014. The refund claimed was Rs. 2,56,57,120/- and refund allowed was Rs. 1,30,96,335/- After set off/adjustments the net amount of refund worked out to Rs. 1,30,96,335/-. 3. On account of the failure of the Respondents to pay interest for the period between 11th September, 2015 (i.e. expiry of two months after filing of the refund application) and 14th September, 2017, the date when the refund amount was received by it, the Petitioner has filed the p....

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....urnish the security under sub-section (5) to the satisfaction of the Commissioner; or (b) furnish the additional information sought under section 59; or (c) furnish returns under section 26 and section 27; or (d) furnish the declaration or certificate forms as required under Central Sales Tax Act, 1956, shall be excluded." 6. With the Petitioner having admittedly filed the return claiming the refund on 10th July 2015, the question of construing the starting of the limitation period of two months from 13th July, 2015 does not arise. It is indeed an ingenuous argument that merely because two days following the date of filing happened to be holidays, the date of filing of the revised return would get postponed to ....

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....f Section 39 (1) of the DVAT Act, it was further explained as under: "19. The interpretation given by us gets affirmation from section 39 of the Act, which relates to power to withhold refund in certain cases. Section 39 of the Act reads as under: 39. Power to withhold refund in certain cases.- (1) Where a person is entitled to a refund and any proceeding under this Act, including an audit under section 58 of this Act, is pending against him, and the Commissioner is of the opinion that payment of such refund is likely to adversely affect the revenue and that it may not be possible to recover the amount later, the Commissioner may for reasons to be recorded in writing, either obtain a security equal to the amount to be refu....

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....oints out that although the refund order was issued on 25th August 2017, the actual refund amount was credited in the Petitioner's account only on 14th September, 2017. This is not disputed by Mr. Anuj Agarawal, learned counsel for the Respondent. Mr. Jain refers to Section 42(1) of the DVAT Act to contend that the interest payable on the refund amount would be for a period till the date the refund amount was actually received i.e. from 11th September, 2015 till 14th September, 2017. 12. Section 42 of the DVAT Act reads as under: "42. Interest (1) A person entitled to a refund under this Act, shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the Government from time ....

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.... (4) Where the collection of any amount is stayed by the order of the Appellate Tribunal or any court or any other authority and the order is subsequently vacated, interest shall be payable for any period during which such order remained in operation. (5) The interest payable by a person under this Act may be collected as tax due under this Act and shall be due and payable once the obligation to pay interest has arisen." 13. The wording of Section 42(1) of DVAT Act is unambiguous. It talks of the two dates i.e. date the refund was due to be paid to the person and "until the date‟ on which the refund is "given‟. The word "given‟ should in the context of the provision mean, the date on which the refund amoun....