CA Final · Indirect Tax Laws · Refunds

Kaveri Exports Pvt Ltd's refund claim arises from an order of an Appellate Authority that has attained finality. It filed the consequential refund application on 10 April, and the refund was not granted within sixty days of receipt of that application. Under the proviso to section 56, which statement is correct?

Where a refund claim arises from a final order of an appellate authority, tribunal or court and is not paid within sixty days of the consequential application, interest at a rate not exceeding nine per cent is payable from the day after those sixty days expire until refund.

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