2000 (11) TMI 1192 - HC - VAT and Sales Tax

Summary

Issues:
Refund of excess amount under Haryana General Sales Tax Act, 1973.

Analysis:
The petitioner filed a petition under article 226 of the Constitution of India seeking a writ of mandamus for the refund of Rs. 22,000 with interest. The petitioner had initially deposited this amount at the time of filing an appeal. The Joint Excise and Taxation Commissioner (Appeals) had set aside the penalty imposed on the petitioner, following which the petitioner requested a refund. Despite multiple representations, the refund was not processed by the authorities. The petitioner relied on relevant case laws to support their claim for the refund.

The counsel for the petitioner argued that in the absence of any order withholding the refund, the respondents were obligated to release the amount. The Assistant Advocate-General failed to provide a valid reason for the delay in refunding the amount by the Deputy Excise and Taxation Commissioner, Rohtak.

The court examined Sections 43 and 44 of the Act along with rule 35(1)(a) of the Haryana General Sales Tax Rules, 1975, which govern the refund process. Section 43 outlines the refund procedure, while Section 44 deals with the power to withhold a refund in certain circumstances. Rule 35(1)(a) specifies the process for determining and refunding excess amounts paid by a dealer.

The court noted that the Assessing Authority must refund any excess amount paid by a dealer, subject to certain conditions. It was highlighted that the authority can withhold the refund only if specific conditions under Section 44 are met. In this case, the respondents failed to demonstrate any valid reason or evidence for withholding the refund, leading to a violation of the petitioner's property rights.

Consequently, the court allowed the writ petition and directed the respondents to refund the amount of Rs. 22,000 to the petitioner with interest at 12% per annum from the date of the application submitted to the Assessing Authority. The judgment emphasized the importance of adhering to the legal provisions governing refunds under the Haryana General Sales Tax Act, 1973.