(1) A person entitled to a refund under this Regulation, shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the Government from time to time, computed on a daily basis from—
(a) the date that the refund was due to be paid to the person; or
(b) the date that the overpaid amount was paid by the person, whichever is later, and such interest shall be calculated upon the date on which the refund is given:
Provided that the interest shall be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Regulation, or under the Port Blair Municipal Council Octroi Tax Bye-Laws:
Provided further that if the amount of such refund is enhanced or reduced, as the case may be, such interest shall be enhanced or reduced accordingly.
(2) When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at the annual rate notified by the Government from time to time, computed on a daily basis, from the date of such default for so long as he continues to make default in the payment of the said amount.
(3) Where the amount of tax including any penalty due is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.
(4) Where the collection of any amount is stayed by the order of the Appellate Tribunal or any court or any other authority and the order is subsequently vacated, interest shall be payable for any period during which such order remained in operation.
(5) The interest payable by a person under this Regulation may be collected as tax due under this Regulation and shall be due and payable once the obligation to pay interest has arisen.
Power to withhold refund in certain cases.
Collection of tax only by registered dealers.
Refund of tax for embassies, officials, international and public organisations.
Interest.
26 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
CHAPTER VII RECOVERY OF TAX, INTEREST AND PENALTIES