9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1576 - HC - VAT and Sales TaxGrant of refund of excess tax alongwith interest - inter-state sales against the statutory declaration forms attracted concessional rate of tax under the CST Act - Input Tax Credit of the writ applicants exceeded output tax liability - HELD THAT - It is not in dispute that after the filing of the annual return, the time limit for assessment and reassessment under the VAT Act expired and no assessment or re-assessment order was passed by the authority. The issue is squarely covered by two decisions of this High Court inMALHOTRA GRAMALHOTRA GRAPHICS THRO' SANJAY MALHOTRA VERSUS STATE OF GUJARAT 1PHICS THRO' SANJAY MALHOTRA VERSUS STATE OF GUJARAT 1 2012 (3) TMI 704 - GUJARAT HIGH COURT and TORRENT POWER LTD. AND 1 OTHER (S) VERSUS STATE OF GUJARAT AND 1 OTHER (S) 2019 (6) TMI 893 - GUJARAT HIGH COURT where it was held that Since the amount is deposited under protest by the petitioners and no order of assessment, reassessment or revision is passed till date, the amount retained by the authority is not backed by any authority of law in the light of Article 265 of the Constitution of India and, therefore, the respondents have no authority to retain the same. This writ application is allowed with a direction to the respondents to grant the refund of Rs. 2,96,622/- due as per the self-assessment return under the VAT Act for the year 2013-14 along with the statutory interest payable on such refund within a period of six weeks from the date of receipt of the writ of this order.
Issues:
Refund of excess tax under the VAT Act for the year 2013-14 not processed and paid. Analysis: The judgment delivered by the High Court of Gujarat pertains to multiple writ applications with similar issues, which are being heard together and disposed of collectively. The lead matter, Special Civil Application No. 14435 of 2021, is treated as the primary case for reference. The writ applicants sought relief through a writ of mandamus or any appropriate order directing the Respondents to grant a refund of Rs. 2,96,622 due as per self-assessment return under the VAT Act for the year 2013-14, along with interest. The applicants are involved in the business of manufacturing and selling FRP/Wooden Cooling Towers and related parts used in various industries. The applicants were registered under the Gujarat Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956. They claimed Input Tax Credit under the VAT Act for tax paid on goods purchased from registered dealers. Due to concessional rates under the CST Act for inter-state sales, the Input Tax Credit exceeded the output tax liability, leading to a refund claim in the self-assessment return for the year 2013-14. Despite multiple reminders, the refund remained unprocessed and unpaid, prompting the applicants to approach the Court. During the hearing, the Court noted that the time limit for assessment and reassessment under the VAT Act had expired without any order passed by the authority. The judgment referenced two previous decisions of the High Court, namely Malhotra Graphics Thr. Sanjay Malhotra vs. State of Gujarat & Anr. and Torrent Power Ltd. vs. State of Gujarat, to support the decision. In light of the circumstances and legal precedents, the Court allowed the writ application directing the Respondents to grant the refund of Rs. 2,96,622 along with statutory interest within six weeks from the date of the order. The decision in the lead matter was extended to connected writ applications, ensuring compliance across all related cases.
|
