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2015 (4) TMI 609 - HC - VAT and Sales TaxRefund claim of pre deposit - retrospective exemption - Whether the amount having been deposited by the assessee as pre-condition of filing appeals before the appellate authority under Section 84(3) of the Rajasthan Sales Tax Act, 1994 can be refunded or not - Held that - Analogy can be drawn is that in the present case though the assessment order was made, liability was created but when by a retrospective amendment, the entire liability was held to be bad in the light of deletion of section 4(e)(i) with retrospective effect from 23.5.1987, therefore, in my view, it would relate back to 23.5.1987 when the amendment was made retrospectively and on that particular date in view of the amendment, no tax was payable and though the assessment has been made it was not recoverable. - After considering the amendment and on reading of clause (f) quoted, though it states that any amount deposited will not be refundable but in my view, when no amount was legally payable on the basis of retrospective amendment than no amount was payable and if amount paid than in terms of the aforesaid notification the amount cannot be retained and thus has to be refunded. In my view when condition (i) of sub clause (e) in clause 4 was deleted w.e.f. 23/5/1987 that date is relevant and is required to be seen and on that particular date nothing was payable by the assessee, therefore, in my view Tax Board was unjustified in coming to the conclusion that section (f) comes into the way of non-refunding of the said amount. - order passed by the Rajasthan Tax Board is set aside. Assessee is liable to refund of the said amount deposited by them as pre-condition to file appeal before DC(A). - Decided in favour of assessee.
Issues:
1. Whether the amount deposited by the assessee as a pre-condition of filing appeals before the appellate authority under Section 84(3) of the Rajasthan Sales Tax Act, 1994 can be refunded or not. Analysis: The judgment involves two Sales Tax Revision Petitions challenging the Rajasthan Tax Board's order dismissing appeals seeking refund of amounts deposited as a pre-requisite condition for filing appeals before the Deputy Commissioner (Appeals) for the assessment years 1989-90 and 1991-92. The main issue is whether the deposited amount can be refunded to the assessee. The facts of the case reveal that the assessee deposited an amount as a pre-condition to file appeals before the Deputy Commissioner (Appeals) based on a notification issued by the State Government. The notification, dated 11.04.2007, deleted certain conditions with retrospective effect from 23.05.1987, leading the assessee to claim that the amount deposited was not legally payable or recoverable. Subsequently, the Tax Board allowed the appeals of the assessee based on this notification. The argument presented by the counsel for the assessee emphasized that the amount deposited was not legally payable due to the retrospective effect of the notification. On the contrary, the revenue's counsel contended that the deposited amount was not refundable as per the notification clause. The court analyzed the notification and relevant legal precedents to determine the legality of the refund claim. The court referred to the notification and relevant legal principles to conclude that since the conditions were deleted retrospectively, no amount was legally payable by the assessee. Drawing analogies from previous legal judgments, the court held that the liability created by the assessment order was nullified by the retrospective amendment, making the deposited amount refundable. In light of the retrospective effect of the notification and the absence of any legally payable amount, the court held that the assessee was entitled to a refund of the deposited amount. The court set aside the Tax Board's order, directing the assessee to be refunded the amount deposited as a pre-condition to file appeals before the Deputy Commissioner (Appeals). In conclusion, the court allowed the revision petitions, ruling in favor of the assessee and ordering the refund of the deposited amount.
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