2010 (7) TMI 945 - AT - VAT and Sales Tax

Summary

Issues:
Refund of excess payment under West Bengal Taxation Tribunal Act, 1987.

Analysis:
The petitioner, a company under the Companies Act, sought intervention regarding non-receipt of refund of &8377; 7,86,330 from the Sales Tax Officer for the fourth quarter ending on March 31, 2007. A demand notice showed the excess payment, but the assessment order stated a different amount payable, attributed to a clerical error. The petitioner requested a refund in accordance with the West Bengal Value Added Tax Act, 2003 and its rules. The assessing authority was required to issue a refund adjustment order for excess payments, allowing adjustments or refunds as per the rules. The petitioner requested a refund in August 2009, but it was withheld due to a revision petition challenging the assessment decision. The Tribunal found the reasons for withholding the refund unconvincing and directed the respondents to refund the amount by a specified date, irrespective of the pending revision petition. The petition was allowed with no costs incurred.

This judgment revolves around the issue of refunding an excess payment made by the petitioner under the West Bengal Taxation Tribunal Act, 1987. The discrepancy between the demand notice and assessment order was attributed to a clerical error, which the petitioner did not contest. The petitioner followed the prescribed procedure under the West Bengal Value Added Tax Act, 2003 and its rules by requesting a refund and highlighting non-adjustment of excess amounts. Despite the petitioner's request in August 2009, the refund was withheld due to a pending revision petition challenging the assessment decision for the same period. The Tribunal found the reasons for withholding the refund unconvincing and directed the respondents to refund the excess amount by a specified date, emphasizing that the pending revision petition should not impact the refund process. The judgment underscores the importance of adhering to statutory refund procedures and timely processing of refunds to taxpayers, irrespective of ongoing disputes or petitions challenging assessments.