(1)(a)A registered dealer entitled to refund in pursuance of any order under this Act including an order of assessment under sections 40, 42 and 43 or in pursuance of any order of a Court shall, in addition to the refund, be paid in the prescribed manner simple interest at the rate of eight per centum per annum for the period commencing immediately after the expiry of sixty days of receipt of the order till the date on which the refund is granted:Provided that interest as applicable under this section shall be admissible after the expiry of the period of ninety days from the date of receipt of the application for grant of refund under sub-section (1) of section 58 till the date of its sanction.(b)The interest payable under clause (a) shall be calculated on the amount of refund as due after deducting therefrom any tax, interest, penalty or nay other dues payable by the dealer under this Act.(c)If, as a result of any order passes under this Act, the amount of such refund is enhanced or reduced, such interest shall be enhanced or reduced accordingly, and where the interest is reduced, the excess amount of interest granted, if any, shall be recovered as if it is an arrear of tax under this Act.
