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2022 (6) TMI 1423 - HC - VAT and Sales TaxValidity of revision notice of assessment - refund alongwith interest on delayed refund - no personal hearing granted - violation of principles of natural justice - HELD THAT - This court in KIRBY BUILDING SYSTEMS INDIA LIMITED VERSUS DEPUTY COMMISSIONER (CT) CHARMINAR DIVISION HYDERABAD AND OTHERS 2011 (8) TMI 1049 - ANDHRA PRADESH HIGH COURT allowed the writ petition and set aside the revisional order dated July 29 2011. The matter was remanded back to the revisional authority to pass fresh orders in accordance with law. Though respondent No. 2 had issued notices dated November 10 2011 and March 24 2012 for hearing which was attended to by the petitioner no order of revision came to be passed. When the revisional order was set aside by this court the consequence was that the original assessment order stood restored and continues till date since no fresh order of revision has been passed on remand - it is evident that when an order of assessment re- assessment rectification or revision of an assessment is made following an order of any court the same is required to be made within three years from the date of receipt of such order by the prescribed or revising authority. The respondent No. 2 directed to refund Rs. 40, 00, 000/- to the petitioner with interest at 6% per cent. per annum to be computed from June 21, 2017 when the petitioner first raised the demand for refund. Let the refund along with interest be paid by respondent No. 2 to the petitioner within a period of three (03) months from the date of receipt of a copy of this order. Petition disposed off.
Issues:
Challenge to revision notice of assessment, refund of a sum of Rs. 40,00,000.00, interest for delay in refund, violation of principles of natural justice, limitation period for passing fresh order, obligation to refund pre-deposit amount, application of section 37 of the VAT Act, obligation to refund with interest, compliance with court orders. Analysis: The petitioner challenged a revision notice of assessment dated July 11, 2011, seeking to set it aside and obtain a refund of Rs. 40,00,000.00 with interest for delay. The petitioner, engaged in manufacturing steel buildings, was initially assessed in 2009 under the VAT Act. A revisional order in 2011 enhanced the tax levy significantly, leading to a court challenge citing a lack of personal hearing. The court set aside the revisional order, directing a fresh order in compliance with the law. Following the court order, the petitioner attended hearings and made deposits under protest, seeking a refund after the expiration of the limitation period. The respondents failed to pass a fresh revisional order despite issuing notices for hearings. The petitioner contended that the original assessment order should prevail due to the lapse of the three-year limitation period for passing a fresh order post-remand. The court considered the application of section 37 of the VAT Act, which mandates a three-year limit for assessments following court orders. It was established that the pre-deposit made by the petitioner was not a tax payment but a pre-deposit, warranting a refund with interest. Citing a Gujarat High Court decision, the court directed the respondent to refund the amount with 6% interest per annum from the date of the refund demand. In conclusion, the court ordered the respondent to refund the pre-deposit amount of Rs. 40,00,000.00 with interest within three months from the date of the order. The writ petition was disposed of with no costs awarded, and pending miscellaneous applications were closed. This comprehensive analysis covers the issues of challenging the revision notice, refund of the pre-deposit amount, compliance with court orders, and the application of relevant legal provisions under the VAT Act.
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