2004 (8) TMI 649 - HC - VAT and Sales Tax

Summary

Issues:
Claim for interest on delayed refund under the Andhra Pradesh General Sales Tax Act, 1957.

Analysis:
The petitioner sought interest on a refund of Rs. 44,61,990 under the Andhra Pradesh General Sales Tax Act, 1957. The order for the refund was passed on November 8, 2001, but the actual refund was made on August 7, 2003. The controversy revolved around the delay in refund and the entitlement to interest for the period of delay. The respondents argued that they had appealed to the Supreme Court, but the appeal was dismissed. Sections 33, 33-B, and 33-F of the Act were crucial in determining the refund and interest provisions.

The Court emphasized that under Section 33-B of the Act, once an order for refund is made, the petitioner is not required to file a separate application for refund. The Court held that the petitioner was entitled to interest from May 8, 2002, till August 7, 2003, as the refund should have been made within six months of the High Court's decision on November 8, 2001. The respondents were directed to calculate and pay the interest to the petitioner without delay.

Additionally, the Court addressed two pending matters before the Tribunal where orders of refund were passed post the High Court's decision. The petitioner was also entitled to interest on these refunds from the date of the refund order till the actual payment, excluding a six-month period. The Court allowed the writ petition, granting interest to the petitioner in both instances. No costs were awarded in the matter.

In conclusion, the judgment highlighted the importance of timely refund under the Andhra Pradesh General Sales Tax Act, 1957, and affirmed the entitlement of the petitioner to interest on delayed refunds as per the statutory provisions outlined in the Act.