2016 (1) TMI 423 - HC - VAT and Sales Tax

Refund claim - Finalization of provisional assessment - Held that - Refund has already been made to the petitioner(s). Further, it is the admitted position that the order dated 11.5.2015 passed by the assessing authority is appealable. It is directed that in case an appeal is filed by the petitioner(s) within a period of 30 days from the date of receipt of a certified copy of this order, the same shall be decided by the appellate authority on merits, in accordance with law and shall not be rejected on the ground of limitation - Regarding interest, liberty is granted to the petitioner(s) to move a representation and in case any representation is filed within a period of four weeks from the date of receipt of the certified copy of the order, the same shall be decided by the concerned authority within six weeks thereafter. It is further directed that in case it is found that the petitioner(s) is/are entitled to the amount of interest, the same be paid to them within next two weeks. - Petition disposed of.

Summary

Issues:
1. Writ petition under Articles 226/227 for quashing orders and seeking refund.
2. Assessment of refund under Punjab Value Added Tax Act, 2005.
3. Rejection of refund application and subsequent reduction of refund amount.
4. Appealability of the assessing authority's order.
5. Granting liberty for representation regarding interest payment.

Analysis:
1. The judgment pertains to two petitions seeking writs under Articles 226/227 of the Constitution of India to quash orders and claim refunds. The petitioner, engaged in the business of manufacturing and selling Hand Tools, filed returns for the assessment year 2010-11, claiming a refund of &8377; 7,08,087. The assessing authority initially allowed a refund of &8377; 3,16,738, which was later rectified to &8377; 5,19,459. However, the application for refund was rejected, and the refund amount was further reduced to &8377; 3,63,726, leading to the filing of the writ petitions.

2. The High Court acknowledged that the refund had already been made to the petitioner. It was noted that the order reducing the refund amount was appealable. The Court directed that if an appeal is filed within 30 days, it should be considered on merits without being rejected on the grounds of limitation. This aspect ensures the petitioner's right to appeal the assessing authority's decision regarding the refund amount.

3. In terms of interest payment, the Court granted liberty to the petitioner to submit a representation within four weeks. If such a representation is filed, the concerned authority must decide on it within six weeks. If the petitioner is found entitled to interest, it should be paid within two weeks thereafter. This provision ensures a fair opportunity for the petitioner to claim any interest due on the refunded amount.

4. Ultimately, the Court disposed of the writ petitions in accordance with the directions provided. The judgment highlights the importance of procedural fairness, appeal rights, and timely resolution of issues related to refunds and interest payments under the Punjab Value Added Tax Act, 2005. The detailed analysis of the issues involved and the Court's directives provide clarity and guidance for the parties involved in the case.