40. Order sanctioning interest on delayed refunds

(1) Where upon an application by any person claiming interest on any refund or otherwise, the Commissioner is satisfied that such interest is due and payable to the applicant or any person under section 38, the Commissioner shall record an order specifying therein the amount of refund the payment of which is delayed, the period of delay for which interest is payable and the amount of interest payable therefor, and shall communicate the same to the applicant or person concerned.
(2) When an order for interest on refund has been made, the Commissioner shall issue Interest Payment Order in Form 307 by forwarding the same to the bank declared by him in his application for registration under section 29, 30 and 30A of the earlier law or under section 21 or 22 of the Act or to the bank which the dealer has intimated to the registering authority.