2017 (10) TMI 1401 - HC - VAT and Sales Tax

Refund of excess tax paid - recovery of tax dues either by attaching the bank account or issuing garnishee - Held that - The respondents are directed to take serious note of the observation made in this order and pass appropriate orders on the petitioner s application for refund dated 22.02.2017 for both the assessment years followed by further representation to the first respondent dated 12.05.2017, and appropriate orders should be passed within a period of eight weeks from the date of receipt of a copy of this order - petition disposed off.

Summary

Issues:
Petitioner seeking refund of excess tax paid for assessment years 2013-14 & 2014-15. Delay in refund by respondents.

Analysis:
The petitioner approached the court due to the respondents' inaction in refunding the excess tax paid for the assessment years 2013-14 & 2014-15, as acknowledged by the Assessing Officer. The total excess tax amounted to ?1,81,31,238/- and ?1,31,88,267/- for the respective years. Despite repeated requests, the refund was not processed, leading to the court intervention.

The learned Additional Government Pleader representing the respondents cited the need for sanctioning the refund amount, implying a delay in the process. However, the court rejected this justification, emphasizing that the same promptness shown in recovering tax dues from defaulting assesses should be applied to refunding excess tax. Any collection of tax beyond the liable amount is deemed illegal, warranting a swift response in refunding the excess paid by the petitioner.

Consequently, the court directed the respondents to consider the petitioner's refund application dated 22.02.2017 for both assessment years, along with subsequent representations. The respondents were mandated to pass appropriate orders within eight weeks from the receipt of the court's order. The directive extended not only to the second respondent but also to the first respondent, to whom a representation was made on 12.05.2017.

In conclusion, the writ petitions were disposed of without imposing any costs, emphasizing the importance of timely and lawful refund processes to uphold the integrity of tax collection and refund mechanisms.