2006 (1) TMI 557 - HC - VAT and Sales Tax

Summary

Issues:
Refund of deposited amount during pendency of appeals under U.P. Trade Tax Act, 1948.

Analysis:
The petitioners sought a writ for the refund of an amount deposited during the pendency of appeals against assessment orders for the years 2000-01 and 2001-02. The petitioner had deposited the admitted tax during the assessment years in question. The appeals were dismissed by the Joint Commissioner (Appeals), following which second appeals were filed before the Trade Tax Tribunal, Ghaziabad. The Tribunal rejected the waiver application for pre-deposit and directed the petitioner to deposit 1/3rd of the disputed tax amount. The High Court had stayed the realization of the disputed tax amount, with a condition to deposit 25% of the amount within a specified period. The Tribunal later allowed both appeals, setting aside the previous orders and remanding the matter back to the assessing authority for fresh assessment. The petitioner then sought a refund of the deposited amount following the Tribunal's decision.

Upon hearing the case, the court observed that the petitioner had deposited a substantial sum during the pendency of the appeals, which was not related to any admitted tax liability. Referring to the U.P. Trade Tax Act, 1948, the court noted that the assessing authority is obligated to refund any amount paid in excess of the due amount under the Act. The court emphasized that until an assessment is made, any amount due should relate to admitted tax liability only. Therefore, amounts deposited in excess of admitted tax liability due to interim orders by appellate authorities or the court cannot be considered as amounts due under the Act.

Consequently, the court allowed both writ petitions and directed the Deputy Commissioner (Assessment)-5, Trade Tax, Noida, Gautambudh Nagar, to refund the sum of Rs. 6,73,264 to the petitioner within seven days from the date of filing a certified copy of the order. The court also instructed the office to provide certified copies of the order to the respective counsels within 24 hours upon payment of charges.