CA Final · Indirect Tax Laws · Refunds

Himalaya Metals Ltd's refund claim arose from an appellate order that attained finality. It filed the consequential refund application on 1 April, and the refund was paid 100 days later. The sixty days expire on 31 May. Which statement correctly reflects the proviso to section 56?

Interest at a rate not exceeding nine per cent is payable from the day immediately after sixty days from receipt of the application expire, until the date of refund. The proviso applies to refunds arising from final orders, and the sixty-day window still applies.

1. AInterest at a rate not exceeding six per cent is payable from the date of the appellate order
2. BInterest at a rate not exceeding nine per cent is payable from the day immediately after expiry of sixty days from the date of receipt of the application till the date of refundCorrect
3. CInterest at a rate not exceeding nine per cent is payable from 1 April
4. DNo interest is payable because the claim arises from an order