2007 (3) TMI 707 - HC - VAT and Sales Tax

Summary

Issues:
1. Writ petition seeking mandamus for refund claim under TNGST Act.
2. Interpretation of section 7F of TNGST Act for refund of tax deducted at source.
3. Correct application filing and grievance conveyance.
4. Direction to respondent for timely consideration of refund application.

Analysis:
1. The petitioner filed a writ petition seeking a writ of mandamus to direct the respondent to consider and pass an order on the refund claim made under section 7F of the Tamil Nadu General Sales Tax Act, 1959 and rule 18F of the Tamil Nadu General Sales Tax Rules, 1959. The petitioner claimed that they were not liable to pay tax under section 3B or section 7C for a works contract with Chennai Port Trust, as the transactions were interstate and CST had been paid at the appropriate rate to the originating state. The Port Trust had deducted tax at source, which the petitioner sought as a refund.

2. Section 7F(6) of the TNGST Act allows for the refund of tax deposited if the dealer proves to the assessing authority that they are not liable to pay tax under specified sections. The corresponding rule 18F also provides for the refund of excess amounts paid. The court directed the respondent to consider the petitioner's application for refund in accordance with section 7F and rules 18F, 18(6) of the TNGST Rules, provided the assessing officer is satisfied that the petitioner is not liable to pay tax under the relevant sections.

3. The court noted discrepancies in the affidavit filed in support of the writ petition, including incorrect dates and inconsistencies in the complaint presented. The learned counsel for the petitioner acknowledged the errors and requested the court to adjust the prayer accordingly. Despite these issues, the court proceeded to address the core matter of the refund claim based on the statutory provisions of section 7F(6) and related rules.

4. In the interest of justice, the court ordered the respondent to consider the petitioner's refund application within twelve weeks from the date of the court's order. The court clarified that this direction did not imply a finding in favor of the petitioner but was a directive for the proper disposal of the application in accordance with the statutory provisions. The writ petition was disposed of without costs, emphasizing the importance of adhering to the legal procedures for refund claims under the TNGST Act.