Section 38 in The Gujarat Value Added Tax Act, 2003
38. Interest on refund.
(1)Where refund of any amount of tax becomes due to the dealer by virtue of an order of assessment under section 34, he shall subject to the provision of this section be entitled to receive in addition to the amount of tax, simple interest at the rate of six percent per annum on the said amount of tax from the date immediately following the date of the closure of the accounting year to which the said amount of tax relates [till the date of payment of amount of such refund] [These words were substituted for the words 'to the date of order of assessment' by Gujarat Act, 6 of 2006, Section22(1)]Provided that where the dealer has paid any amount of tax after the closure of the accounting year and such amount is required to be refunded, no interest shall be payable for the period from the date of closure of such accounting year to the date of payment of such amount.(2)A registered dealer entitled to refund in pursuance of any order other than referred to under sub-section (1) or in pursuance of any order by any court, shall subject to rules, be entitled to receive, in addition to the refund, simple interest at the rate of six per cent [per annum on the amount of such refund from the date immediately following the date of closer of the accounting year to which the said amount of refund relates] [These words were substituted for the words 'for the period commencing after thirty days from the date of such order' by Gujarat Act, 6 of 2006, Section22 (2)(a)] till the date of payment of amount of such refund. The interest shall be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Act or under the Central Act. If, as a result of any order passed under this Act, the amount of such refund is enhanced or reduced, such interest shall be enhanced or reduced accordingly :[***] [The proviso and explanations under sub-section (2) were deleted by Gujarat Act, 6 of 2006, Section 22(2)(b)](2)Where the realization of any amount remains stayed by the order of any court or authority and such order is subsequently vacated, interest shall be payable also for any period during which such order remained in operation.
