M/S Kesri Steels Limited vs. Commissioner Trade And Taxes & Anr.
Original PDF →Facts
The Petitioner, M/s Kesri Steels Limited, filed a writ petition before the Delhi High Court seeking interest under Section 42 of the Delhi Value Added Tax (DVAT) Act on a refund amount of Rs. 13,02,811/-. The refund order was passed on May 22, 2024, and the refund itself had already been paid. The Petitioner cited a previous judgment of the High Court in Consortium of Sudhir Power Projects Ltd. and Sudhir Gensets Ltd. v. Commissioner of Delhi Goods and Services Tax to support their claim for interest. The Respondent/Department acknowledged the claim and stated that the interest payment was under process.
Held
The Court held that the Petitioner is entitled to interest under Section 42 of the DVAT Act on the refund amount. The Court noted that the refund order was passed on May 22, 2024, and the refund had already been paid. The Court was also informed by the Respondent/Department that the interest payment was under process. Relying on the Petitioner's submission and the Respondent's acknowledgment, the Court directed the Respondent to pay the interest in terms of Section 42 of the DVAT Act to the Petitioner within a period of two months. The Court disposed of the petition in terms of this direction. No issue was expressly left undecided.
Key Issues
1. Whether the Petitioner is entitled to interest under Section 42 of the DVAT Act on the refund amount of Rs. 13,02,811/-, considering the refund order was passed on May 22, 2024, and the refund has been paid. Petitioner's Argument: The Petitioner contended that they are entitled to interest on the refund amount as per Section 42 of the DVAT Act. They relied on the precedent set by this Court in Consortium of Sudhir Power Projects Ltd. and Sudhir Gensets Ltd. v. Commissioner of Delhi Goods and Services Tax, which held that interest should be paid on delayed refunds. Respondent's Argument: The Respondent/Department submitted that the interest payment was under process and would be paid to the Petitioner.
Sections Cited
Section 42
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Cause title — parties, addresses and appearances
O R D E R % 21.03.2025
This hearing has been done through hybrid mode.
The Petitioner has filed the present writ petition under Article 226 of the Constitution of India seeking interest under Section 42 of the DVAT Act on the refund amount of Rs.13,02,811/-. The Petitioner relies upon the judgment passed by this Court in Consortium of Sudhir Power Projects Ltd. and Sudhir Gensets Ltd. v. Commissioner of Delhi Goods and Services Tax, [W.P.(C) 15684/2022, decided on 31st January, 2023] to submit that interest ought to be paid to the Petitioner.
To this ld. Counsel for the Respondent/Department submits that the interest is under process and shall be paid.
The Court has perused the refund order dated 22nd May, 2024 in which This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 21:35:27
refund has been approved and the refund has also been paid. Accordingly, let the interest in terms of Section 42 of the DVAT Act be paid to the Petitioner within a period of two months.
The petition is disposed of in the above terms. PRATHIBA M. SINGH, J. RAJNEESH KUMAR GUPTA, J. MARCH 21, 2025/dk/Ar. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 21:35:27
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.