2005 (2) TMI 799 - HC - VAT and Sales Tax

Summary

Issues:
1. Adjudication on whether the petitioner should be given interest on the amount deposited earlier.

Analysis:
The High Court of Calcutta, after hearing counsels for the petitioners, respondents, and the state, focused on determining whether the petitioner is entitled to interest on the amount deposited earlier. The Tribunal's order did not address this issue, and the court observed that no grounds were provided for refusing interest. The court noted that the payment order should be issued along with the demand notice in cases where an excess amount of tax has been admitted.

The petitioners' counsel referred to previous decisions of the court and the Tribunal where interest was allowed in a similar manner. However, the court decided not to delve into those decisions for this case. The state's counsel suggested that interest could be given at the rate applicable to savings bank accounts in banks.

After careful consideration of the facts and materials presented, the court agreed with the petitioners' counsel's contention. Citing a previous ruling of the court, the court determined that the petitioner should be granted interest at a rate of 6% per annum. The court ordered the payment of the calculated interest for the period specified within three months from the date of the order.

The court concluded the writ application with the decision to grant interest to the petitioner and directed the timely payment of the specified amount. Additionally, the court mentioned the provision of a xerox certified copy of the order upon request on a priority basis.