1998 (9) TMI 620 - HC - VAT and Sales Tax

Summary

Issues:
- Refund of sales tax amount due to petitioner
- Interpretation of sections 33-B and 33-F of the Andhra Pradesh General Sales Tax Act, 1957
- Failure of assessing authority to refund amount within stipulated time
- Entitlement of petitioner to interest on delayed refund

Analysis:

The petitioner filed a writ petition seeking a mandamus for the refund of Rs. 25,000, following an order by the Sales Tax Appellate Tribunal in favor of the petitioner regarding the levy of sales tax on firewood. The petitioner contended that the sale to M/s. A.P. Paper Mills was a second sale exempt from sales tax. Despite the Tribunal's order in August 1993 entitling the petitioner to a refund, the respondents failed to refund the amount, leading to the present petition.

The petitioner argued that under sections 33-B and 33-F of the Act, the assessing authority was obligated to refund the amount due without the petitioner making a claim. Section 33-F stipulates that if a refund is not granted within six months of the order, the State Government must pay simple interest at 12% per annum. The failure of the Revenue to refund the amount as per the Tribunal's order warranted interest payment as per section 33-F.

The respondents contended that they had passed a revised order in 1996 exempting the turnover and issued a refund order in 1997, which was served on the petitioner's son as the petitioner was unavailable. However, the petitioner had not filed any application for the refund until then. The Court noted that the order of the Tribunal was communicated to the assessing authority in 1993, and as per Rule 43 of the Rules, the refund should have been made within two months of the communication.

The Court held that the assessing authority's failure to refund the amount within the stipulated time warranted the petitioner's entitlement to interest under section 33-F. The respondents were directed to refund the amount with 12% interest from March 1, 1994, to the addressee mentioned in the counter-affidavit within two weeks of the order. The writ petition was allowed with costs, emphasizing the obligation of the assessing authority to comply with refund provisions promptly.