2020 (8) TMI 935 - HC - VAT and Sales Tax

Refund claim alongwith interest - non-compliance with the direction to decide the claim for aforesaid refund along with interest as early as possible practicably within a period of eight weeks - HELD THAT - The respondent is directed to supply copies of the order dated 14th August, 2020 to the Court Masters as well as to the learned counsel for the petitioner during the course of day. The undertaking given by respondent with regard to payment to the petitioner is accepted by this Court and the respondent is held bound by the same. The present writ petition is disposed of with liberty to the petitioner to challenge the order dated 14th August, 2020 refusing grant of interest to the petitioner, by filing appropriate proceedings in accordance with law. All rights and contentions of the parties are left open.

Summary

Issues:
1. Direction sought for balance refund and interest under Section 42(1) of the Delhi Value Added Tax Act, 2004.
2. Compliance with previous court order regarding refund claim and interest.
3. Rejection of interest claim by respondent.
4. Disposition of the writ petition with liberty to challenge the rejection of interest claim.

Analysis:
1. The appellant filed a writ petition seeking a direction for the respondent to issue the balance refund of Rs. 1,25,60,785/- for the fourth quarter 2014-15 along with interest as per Section 42(1) of the Delhi Value Added Tax Act, 2004. The interest was stated to be accruing at the rate of Rs. 2,065/- per day until the refund was credited to the petitioner's account.

2. The petitioner alleged non-compliance by the respondent with a previous court order dated 18th October, 2019, directing the respondent to decide on the refund claim with interest within eight weeks. The respondent had sought time to obtain instructions during the last hearing.

3. The respondent, through Mr. Anuj Aggarwal, stated that the principal refund claim had been directed to be refunded by an order dated 14th August, 2020, and would be credited within a week. However, the claim for interest was rejected through a separate speaking order dated 14th August, 2020.

4. The court accepted Mr. Anuj Aggarwal's undertaking regarding the payment to the petitioner and held the respondent bound by it. The writ petition was disposed of, allowing the petitioner to challenge the rejection of interest by filing appropriate proceedings. The parties were granted liberty to pursue their rights and contentions, and the order was to be uploaded on the website and forwarded to the counsel via email.