2004 (1) TMI 664 - HC - VAT and Sales Tax

Summary

Issues:
Refund due to petitioner for assessment year 1998-99.

Analysis:
The petitioner claimed a refund of Rs. 12,96,210 for the assessment year 1998-99, while the department verified and refunded Rs. 2,68,676. Further verification was requested by the department to the Treasury Officer to ascertain the rest of the claimed amounts. The court emphasized that the respondents must not delay refunds unreasonably, as the statute deems six months from the date of application as a reasonable time frame for refunds, with interest payable after this period. The court held that the statutory scheme for refunds should not be circumvented by a sluggish approach from the authorities. Upon receiving an application for a refund, it is the duty of the department to promptly review the relevant documents and make the refund within the stipulated time, including interest if applicable.

The court directed the respondents to expedite the verification process as promised in their affidavit, ensuring prompt refund of any further amount found payable. The court mandated completion of this exercise within six weeks from the receipt of the court's order. Additionally, the court specified that any interest payable under section 43 of the Bihar Finance Act should also be disbursed to the petitioner. The writ petition was disposed of with these directives, emphasizing the importance of timely and efficient refund processes in accordance with statutory provisions.