CA Final · Indirect Tax Laws · Refunds

Bharat Polymers Ltd. had a refund claim arising from an order of the Appellate Authority that has attained finality. It filed an application consequent to that order on 5 January. The refund was not paid within sixty days from receipt of that application. Which statement about interest is correct under the proviso to section 56?

Interest at a rate not exceeding nine per cent is payable, running from the date immediately after sixty days from receipt of the application filed consequent to the final order until the refund is made. The lower six per cent rate applies to ordinary delayed refunds, not those arising from final orders.

1. AInterest is payable at a rate not exceeding 6% from the date of the appellate order
2. BInterest is payable at a rate not exceeding 9% from the date immediately after expiry of sixty days from receipt of the application till the date of refundCorrect
3. CInterest is payable at a rate not exceeding 9% from the date of the original refund application before the proper officer
4. DNo interest is payable because the refund arose from an appellate order