1 [13A. Payment ofinterest
Where any amount refundable to any person under an order made under any provision of this Act is not refunded to him within ninety days,--
(a) of the date of such order, if that order is made by the refunding authority; or
(b) of the date of receipt of such order by the refunding authority, if that order is made by an authority other than the refunding authority, the refunding authority shall pay such person simple interest at the rate of 2 [twelve percent] per annum on the said amount from the day immediately following the expiry of the said ninety days to the day of the refund:
Provided that the interest calculable shall be on the balance of the amount remaining after adjusting out of the refundable amount any tax, penalty or other amount due under this Act, for any year by the person on the date from which such interest is calculable.
Explanation I.--If the delay or any part thereof in granting the refund within the aforesaid period of ninety days is attributable to the person to whom the refund is payable the period of such delay shall be excluded for the purpose of calculation of interest.
Explanation II.--The expression "refunding authority" means an 3 [Commercial Tax Officer] or 3 [Assistant Commissioner of Commercial Taxes] or any other officer of the Commercial Taxes Department authorised to make any assessment or to levy penalty or both by or under this Act.
Explanation III.--The interest payable for a part of a month shall be proportionately determined.]
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1. Inserted by Act 27 of 1985 w.e.f. 1.8.1985.
2. Substituted by Act 5 of 1996 w.e.f. 1.4.1996.
3. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.