The petitioner sought payment of interest on delayed refund already sanctioned by the authorities. The factual background showed that though the refund was sanctioned in February 2020, the amount was released only in November 2024. The State authorities sought to shift liability to Central authorities.
The Court held that the assessee cannot be made to suffer due to inter-departmental disputes between State and Central authorities. Since refund was delayed beyond sixty days, interest under Section 56 was held payable. Directions were issued for payment of interest in accordance with law.