SIDDHARTH MERCHANTILE (P) LTD Vs. INTELLIGENCE OFFICER

JUDGEMENT

(1.) PETITIONER 's goods were detained and finally confiscated as per Ext.P1 order issued under Section 47(16) of the KVAT Act. Accordingly, the goods were sold and the sale proceeds were also realised. In Ext.P2 judgment rendered by this Court held thus:

(2.) FINALLY , Ext.P3 order was passed directing that after appropriation of penalty and tax, balance amount of Rs.3,20,308.00 be refunded to the petitioner. This order was passed on 07.02.2011. In spite of the order, refund was not made. Therefore, this writ petition was filed for directing the first respondent to refund the amount and also to pay interest as provided under Section 89(4) of the KVAT Act.

(3.) ALTHOUGH , the counsel for the petitioner contended that the petitioner is entitled to the interest on the date of Ext.P2 judgment, which was rendered on 1.07.2009, I am unable to accept the contention. In my view, his claim for refund crystallized into a right only with the issuance of Ext.P3 order dated 07.02.2011. Therefore, if payment is not made within the three months period provided in Section 89(4), from 07.02.2011, for the period beyond that date, the petitioner can legitimately claim interest. In this case, according to the petitioner, refund was made only on 28.11.2011. Therefore, his right to claim interest is only for the period from 07.05.2011 till 28.11.2011. In such circumstances, I dispose of the writ petition directing the first respondent to pay interest as provided under Section 89(4) of the KVAT Act for the period from 07.05.2011 till the date of refund. Such payments shall be made at any rate, within eight weeks of production of a copy of this judgment. Writ Petition is disposed of as above.