1997 (11) TMI 492 - HC - VAT and Sales Tax

Summary

Issues:
Petition seeking refund of penalty with interest under articles 226 and 227 of the Constitution from the State of Punjab.

Analysis:
The petitioner, a private limited company, transported goods from Rajasthan to Ludhiana in 1994, detained by the Excise and Taxation Officer, and released on payment of Rs. 40,000 penalty. An appeal set aside the penalty, leading to a refund order of Rs. 40,000 on March 25, 1995, which the petitioner sought but was not provided. The respondents cited administrative changes for the delay in refund, arguing against interest payment. The Act provides for interest on delayed refunds under section 12(3), (4), and (5), entitling the dealer to interest if not refunded within 90 days, with rates specified. The court noted the delay was unexplained, not falling under the Act's exclusion provisions, and ordered interest payment on the refund amount as per section 12(3) rates. The petition was allowed, directing the respondents to pay interest to the petitioner as specified.

Conclusion:
The judgment addressed the petitioner's claim for refund of penalty with interest, highlighting the delay in refund and the legal provisions under the Act governing interest payments on delayed refunds. The court found the delay unjustified, rejecting the respondents' explanations related to administrative changes. By applying the provisions of section 12 of the Act, the court ordered the payment of interest on the refund amount, emphasizing the importance of timely refund and adherence to statutory requirements.