2007 (4) TMI 634 - HC - VAT and Sales Tax

Summary

Issues: Refund of amounts, entitlement to interest, liability of officers, enquiry by Chief Secretary.

Refund of Amounts: The petitioner was held entitled to a refund of Rs. 21,45,648, but the amounts were not being paid. The court acknowledged the delay in refunding the amount, which was due since March 25, 1998. Despite a formal order for refund issued on July 18, 2003, the amounts remained unpaid. The court deemed it unfair to pay interest from state funds due to officers' negligence but recognized the petitioner's entitlement to interest at the statutory rate of 12 per cent.

Entitlement to Interest: The court noted that the petitioner was entitled to interest at the rate of 12 per cent, as per the Andhra Pradesh General Sales Tax Act, 1957. Although the rate was considered high in the commercial context, the court upheld it as per the statutory provision. The delay in refunding the amount since 1998 warranted the payment of interest to the petitioner.

Liability of Officers: The court directed the Chief Secretary of the State to conduct an inquiry to determine the liability of the officers responsible for the delayed refund. It emphasized the importance of holding the officers accountable to prevent state funds from bearing the burden of their negligence. The court highlighted the need for such actions to ensure timely refunds in similar cases and instructed the Chief Secretary to report the findings within six months.

Enquiry by Chief Secretary: The Chief Secretary was tasked with investigating and fixing the liability of the officers involved in the delayed refund. The court stressed the significance of this inquiry beyond the current case, emphasizing the need for accountability and timely resolution of refund issues. The court expected the Chief Secretary to provide updates to the court Registrar within six months and urged the resolution of any outstanding refund issues promptly.