Interest on refund

Interest on refund.—

1. (1) A registered dealer shall be entitled to receive simple interest at the rate of six per cent. per annum on the amount of refund, for the period commencing from the date immediately following the date of expiry of ninety days from the date of receipt of the application for refund in the prescribed form complete in all respects or from the date of the order and ending with the date on which the refund is granted: Provided that, the interest shall be paid on the amount of refund, less the amount of penalty, if any, payable by the dealer.
2. (2) Where by reason of any order passed in appeal or other proceedings under this Act, the refund to which the dealer is entitled is increased or decreased, as the case may be, the interest payable shall be proportionately increased or decreased.