Section 56. Interest on delayed refunds.-
If any tax ordered to be refunded under sub-section
(5) of section 54 to any applicant is not refunded within sixty days from the
date of receipt of application under sub-section (1) of that section, interest
at such rate not exceeding six per cent. as may be specified in the
notification issued by the Government on the recommendations of the Council
shall be payable in respect of such refund 1[for the period of delay beyond
sixty days from the date of receipt of such application till the date of refund
of such tax, to be computed in such manner and subject to such conditions and
restrictions as may be prescribed]:
Provided that where any claim of refund arises from an
order passed by an adjudicating authority or Appellate Authority or Appellate
Tribunal or court which has attained finality and the same is not refunded
within sixty days from the date of receipt of application filed consequent to
such order, interest at such rate not exceeding nine per cent. as may be
notified by the Government on the recommendations of the Council shall be
payable in respect of such refund from the date immediately after the expiry of
sixty days from the date of receipt of application till the date of refund.
Explanation.-For the purposes of this section, where
any order of refund is made by an Appellate Authority, Appellate Tribunal or
any court against an order of the proper officer under sub-section (5) of
section 54, the order passed by the Appellate Authority, Appellate Tribunal or
by the court shall be deemed to be an order passed under the said sub-section
(5).
