Section 39(2) in Uttaranchal Value Added Tax Act, 2005
(2)Where a refund is withheld under sub-section (1) and as a result of the appeal or further proceeding or any other proceeding, dealer becomes entitled to any refund, the dealer shall be entitled to interest as provided under sub-section (1) of Section 41 on the refundable amount:Provided that if any refund has been withheld under this Section, and if any amount out of the refundable amount is adjusted towards any tax liability of the dealer, the dealer shall not be entitled for any amount of interest for the relevant period on the amount so adjusted.
