2005 (7) TMI 620 - HC - VAT and Sales Tax

Summary

Issues:
1. Claim for interest on refund under section 12(3) of the Act.

Analysis:
The judgment of the court involved multiple Civil Writ Petitions filed by a registered dealer under the Punjab General Sales Tax Act, 1948. The petitions raised common questions of law and were decided together. Each petition dealt with demands, penalties, interests, and refunds for different assessment years. The court examined the sequence of events in each case to determine the entitlement to refunds and interest on the refunded amounts.

In C.W.P. No. 17062 of 2004, the petitioner sought interest on the refunded penalty amount from the date the penalty order was set aside by the appellate authority. The court noted that the petitioner was entitled to interest under section 12(3) of the Act as the refund was delayed beyond 90 days from the date of the order.

C.W.P. No. 17063 of 2004 involved a demand for a specific amount, including penalty and interest, for the assessment year 1983-84. The petitioner claimed a refund and interest on the refunded amount, which was issued after a delay. The court found that the petitioner was entitled to interest under section 12(3) of the Act for the delayed refund.

In C.W.P. No. 17064 of 2004, a demand was raised for a particular assessment year, including penalty and interest. The petitioner received a refund after a delay and claimed interest on the refunded amount. The court held that the petitioner was entitled to interest under section 12(3) of the Act for the delayed refund.

C.W.P. No. 17065 of 2004 dealt with a refund for a specific assessment year, and the petitioner claimed interest on the refunded amount. The court found that the petitioner was entitled to interest under section 12(3) of the Act for the delayed refund.

Lastly, in C.W.P. No. 18536 of 2004, a penalty was imposed on the petitioner, which was later found to be wrongly imposed. The petitioner sought a refund and interest on the refunded penalty amount. The court held that the petitioner was entitled to interest under section 12(3) of the Act for the delayed refund.

The court analyzed section 12 of the Act, specifically sub-sections (1) and (3), to determine the applicability of refund provisions and interest entitlement. It clarified that sub-section (1) pertains to claims made by the dealer, while sub-section (3) requires the Assessing Authority to give effect to orders issued under the Act. The court emphasized that interest for delay in refunds can be denied only if the delay is beyond the control of the authority or attributable to the dealer. Since no valid reasons were provided for the delays, the court ruled in favor of the petitioners, allowing interest on the refunded amounts as per section 12(3) of the Act.

In conclusion, the court allowed the writ petitions, granting the dealers simple interest as per section 12(3) of the Act. The respondents were directed to pay the accrued interest within three months from the receipt of the certified copy of the order.