1997 (4) TMI 493 - AT - VAT and Sales Tax

Summary

Issues:
- Challenge to orders of Commercial Taxes Officer for levying interest under section 11B, Rajasthan Sales Tax Act, 1954
- Request for refund of interest collected
- Applicability of Supreme Court judgments on interest payment
- Availability of alternative remedy by filing revisions under section 15 of 1954 Act
- Jurisdiction and authority of the Tribunal in deciding the case transferred from the High Court

Analysis:

The judgment pertains to writ petitions filed in the Rajasthan High Court challenging the orders of the Commercial Taxes Officer for levying interest under section 11B of the Rajasthan Sales Tax Act, 1954. The petitions sought the refund of interest collected at the rate of 12 per cent per annum. The Tribunal, established under the Rajasthan Taxation Tribunal Act, 1995, took over the cases and consolidated them due to similar facts and legal issues across assessment years 1970-71 to 1973-74 under the Rajasthan Sales Tax Act and Central Sales Tax Act.

The petitioner contended that the interest levied was based on an earlier Supreme Court decision which was subsequently overruled by a later judgment. The respondents raised a preliminary objection, arguing that the writ petitions were not maintainable as the petitioner had an alternative remedy through revisions under section 15 of the 1954 Act. The petitioner, on the other hand, argued that post the Supreme Court's judgment, the respondents were obligated to refund the interest amount, and the petitions were seeking relief granted in similar matters by the Supreme Court.

The Tribunal considered the legal arguments presented, including references to relevant Supreme Court decisions and previous precedents. It emphasized that the subject matter of the case transferred from the High Court to the Tribunal must be decided, and it cannot be summarily dismissed based on the availability of alternative remedies. The Tribunal acknowledged the overruling of the earlier Supreme Court decision and held that the interest levied could not be sustained. Consequently, the orders imposing interest were set aside, and the amounts collected were directed to be refunded to the petitioner with 12 per cent interest from the date of deposit/recovery till the date of payment.

In conclusion, the Tribunal allowed the writ petitions, ordering the refund of interest amounts collected under the Rajasthan Sales Tax Act, 1954, and Central Sales Tax Act, 1956, within six months from the judgment date. The decision highlighted the importance of adhering to the latest legal interpretations and ensuring the proper application of law in tax matters.