2013 (2) TMI 654 - HC - VAT and Sales Tax

Summary

Issues involved: Refund of commercial tax on high speed diesel purchase u/s Madhya Pradesh Commercial Tax Act and Central Sales Tax Act.

Summary:
The petitioner, a public limited company, sought a refund of Rs. 25,34,173 commercial tax on high speed diesel purchase, claiming exemption under Madhya Pradesh Commercial Tax Act and Central Sales Tax Act. The company had an eligibility certificate for tax exemption from March 28, 1997 to March 27, 2008. Despite this, respondent Nos. 5 and 6 charged tax on diesel purchases. The petitioner applied for a refund to Bharat Petroleum Corporation Limited, but the request was redirected to the Sales Tax Department. The Commissioner rejected the representation for refund. The petitioner had paid tax on diesel purchases, which respondent Nos. 5 and 6 remitted to the State. Respondent Nos. 5 and 6 argued that they were not liable to refund the tax as they had paid it to the State.

In a previous case, it was established that the company was entitled to tax exemption on diesel used for in-house consumption. The petitioner had paid tax to respondent Nos. 5 and 6 for in-house consumption, and they had remitted the tax to the State as per instructions from the Commercial Tax Department. Therefore, the petitioner was entitled to a refund from the State. The court directed respondent Nos. 1 to 4 to refund the amount of Rs. 25,34,173 to the petitioner within three months from the date of the order. No costs were awarded in the case.