CA Final · Indirect Tax Laws · Refunds

Kaveri Exports Pvt Ltd received a refund order in its favour from the Appellate Authority. The order has attained finality. The company filed an application consequent to that order on 10 June, and the refund was not paid within sixty days of receipt of that application. Under the proviso to section 56, from which point and at what maximum rate is interest payable?

Interest is payable from the day after sixty days from receipt of the application filed consequent to the final appellate order, at a rate not exceeding nine per cent. The proviso to section 56 prescribes the higher rate for refunds arising from orders that have attained finality.

1. AFrom the date immediately after expiry of sixty days from receipt of the application, at a rate not exceeding nine per centCorrect
2. BFrom the date immediately after expiry of sixty days from receipt of the application, at a rate not exceeding six per cent
3. CFrom the date of the Appellate Authority's order, at a rate not exceeding nine per cent
4. DFrom the date of the original refund claim, at a rate not exceeding six per cent