$~32 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 15141/2024 SWASTIK TRADERS .....Petitioner Through: Mr. Vineet Bhatia with Ms. Aamnaya Mishra, Ms. Anu Agarwal, Mr. Abhinav Sharde, Ms. Samridhi Prakash and Mr. Tanish Aggarwal, Advs. versus COMMISSIONER OF VAT AND ANR. .....Respondents Through: Ms. Urvi Mohan and Ms. Mahika Bisht, Advs, for GNCTD CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MS. JUSTICE SHAIL JAIN O R D E R % 09.07.2026 1. Through the present Writ Petition, the Petitioner prays for the following reliefs: “(a) Set aside the impugned Order dated 01.05.2024 to the extent that it does not grant the interest of Rs.19,88,000/-. (b) Direct the Respondents to sanction interest of Rs.19,88,000/- to the petitioner . (c) Award Costs of litigation to the Petitioner. (d) Pass any other or further order(s) or relief(s) which this Hon‟ble Court may deem fit, just and proper considering the facts and circumstances of the case and in the interest of justice, equity, and fair play.” 2. The facts in the present matter depict a very sorry state of affairs on the part of the Respondents. 3. The premises of the Petitioner were searched in 2014. The Petitioner claims that he was forced to pay Rs.34,88,650/- by cheque, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/07/2026 at 15:53:45 though there was no such demand on that day. Subsequently, the Assessing Authority, in order to justify the recovery of Rs.34,88,650/-, made a demand vide Order dated 01.08.2014, while adjusting the amount of Rs.34,88,650/-. The Appeal filed by the Petitioner was allowed on 11.10.2017, whereby the Assessing Authority was directed to pass a fresh order. 4. The Assessing Authority once again passed an order reiterating the same demand vide Order dated 03.01.2018. The Petitioner was once again forced to file an Appeal, which was heard by the Objection Hearing Authority on 04.09.2023 and the same was allowed. Yet the amount of Rs.34,88,650/- was not released, forcing the Petitioner to file Writ Petition being W.P.(C) 919/2024 in the High Court. 5. During the pendency of the Writ Petition, the amount was refunded, but interest thereon was not paid. Hence, the Court proceeded to pass the following Order: “1. Learned counsel for respondents submits that refund claim of the petitioner has been sanctioned and refund alongwith interest has been granted to the petitioner. 2. Learned counsel for petitioner submits that interest has been incorrectly computed and refund has been granted from a much later date. He accordingly seeks leave to withdraw the petition reserving the right of the petitioner to impugn the order insofar as it relates to grant of interest to the petitioner. 3. In view of the above, petition is dismissed as withdrawn with liberty as prayed for.” 6. The Petitioner claims that he applied for refund in the month of January, 2018 when his appeal was allowed on 11.10.2017 for the first time. Now, by the Impugned Order dated 01.05.2024, the Petitioner was only awarded interest for a period of 51 days. 7. After having heard learned counsel representing the parties, this Court is compelled to observe that the Department has not conducted This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/07/2026 at 15:53:45 itself in a fair and proper manner. 8. Once the Appellate Authority had set aside the Order dated 01.08.2014 on 11.10.2017, proceedings for refund of the amount should have been initiated, since there was no demand on that day. 9. In any case, the Order dated 04.09.2023 passed by Objection Hearing Authority, which is an Appellate Authority, has become final which declares that the Petitioner is not required to pay the amount and orders for recovery of Rs.34,88,650/- collected at the time of illegal search. In such a situation, the Petitioner was entitled to interest for at least two months after the order at first instance was passed on 11.10.2017. 10. Keeping in view these observations, the Writ Petition is allowed. Accordingly, the Respondents are directed to pay the interest @ 6 per cent. ANIL KSHETARPAL, J. SHAIL JAIN, J. JULY 9, 2026/JYH/Kb This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/07/2026 at 15:53:45