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2001 (8) TMI 1357 - HC - VAT and Sales Tax
Issues:
Sales tax assessment refund dispute for the year 1989-90. Analysis: The petitioner approached the court seeking a writ of mandamus to direct the respondents to refund an amount of Rs. 1,05,832 along with interest. The respondents contended that the refund was not given as the petitioner failed to exercise its option under rule 35 of the Haryana General Sales Tax Rules, 1975. They claimed that an amount of Rs. 44,938 due from the petitioner was adjusted, and a refund/adjustment order for Rs. 60,874 was issued later. The petitioner argued that since nothing was due from them on the assessment date, the refund should have been made immediately. Despite representations and reminders, the payment was not made until after the petition was filed. The petitioner sought interest on the delayed refund. The court noted that a demand of Rs. 44,938 was raised against the petitioner for the assessment year 1988-89, while an amount of Rs. 1,05,832 was due to the petitioner for the assessment year 1989-90. The department automatically adjusted Rs. 44,938 and should have refunded the remaining Rs. 60,874 promptly. The respondents argued that the petitioner failed to exercise the option under rule 35, but the court found that since no amount was due from the petitioner, the refund should have been made without requiring an option. The court held that the assessing authority should have directed the refund of Rs. 60,874 as per rule 35, and the failure to do so entitled the petitioner to interest. It was highlighted that the petitioner had written to the department requesting the refund, and reminders were sent before resorting to the court. The court ruled in favor of the petitioner, directing the respondents to pay interest as per the provisions of section 25 of the Haryana General Sales Tax Act, 1973, from the due date until the actual payment date. The respondents were ordered to make the payment within one month from the date of the court order. The petition was allowed without any costs.
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