2001 (8) TMI 1347 - HC - VAT and Sales Tax

Summary

Issues:
Refund of deposited amount under Punjab General Sales Tax Act, 1948.

Analysis:
The petitioner sought a writ of mandamus for the refund of Rs. 50,000 deposited pursuant to an order under section 14-B(7) of the Punjab General Sales Tax Act, 1948, along with interest. The Assessing Authority had imposed a penalty of Rs. 50,000 on the petitioner on May 3, 1994, which was later challenged. The petitioner's appeal was accepted on November 26, 1997, entitling them to a refund. Despite multiple requests for refund, the amount was not returned. The respondents maintained that the penalty had been confirmed on June 25, 2001, and the petitioner was not entitled to relief.

The respondents denied receiving letters dated December 28, 1998, and May 17, 1999, for want of knowledge. However, it was admitted that the petitioner's representation for refund in June 1998 was received by the respondents, yet no action was taken. The Court noted the delay in processing the case and the failure to refund the deposited amount despite the acceptance of the appeal in 1997. The petitioner's request for refund was repeatedly ignored, leading them to approach the Court through the writ petition in 2000.

The Court expressed dissatisfaction with the delay in decision-making by the Excise and Taxation Department and the lack of action on refund requests. The appellate authority's order in 1997 had set aside the penalty imposed in 1994, rendering it non-existent. The Court emphasized that penalties become effective only upon issuance and cannot be imposed retrospectively. Consequently, the Court allowed the writ petition, directing the respondent to release the deposited amount of Rs. 50,000 with interest from November 27, 1997, to the date of payment, giving the petitioner the option for adjustment, if applicable. No costs were awarded in the circumstances.