2015 (3) TMI 1436 - HC - VAT and Sales Tax

Refund of KVAT paid in excess in the past - HELD THAT - The 1st respondent is directed to consider and pass orders on Ext. P2 representation within a period of two months from the date of receipt of a copy of this judgment, after hearing the petitioner. The 1st respondent shall compute the total refund amount, that is due to the petitioner together with upto-date interest, as contemplated under Section 89 of the KVAT Act. The said computation has to be done by the 1st respondent so as to determine the amount of refund, that is due to the petitioner, so that the said amount, after deduction of the amounts due from the petitioner pursuant to finalisation of the assessment for 2012-13, can be refunded to the petitioner, immediately thereafter. The writ petition is disposed off.

Summary

Issues:
Refund of excess KVAT paid in the past, inaction by respondent in issuing refund, pending finalization of assessment for the year 2012-13, direction for refund amount computation and interest.

Analysis:
The petitioner sought a refund of excess KVAT paid in the past, aggrieved by the respondent's inaction in not issuing the refund amounts. The petitioner had filed a representation before the 1st respondent, but no orders were passed. The High Court directed the 1st respondent to consider and pass orders on the representation within two months, after hearing the petitioner. The 1st respondent was instructed to compute the total refund amount due to the petitioner along with interest as per Section 89 of the KVAT Act. The computation was to determine the refund amount after deducting any amounts due from the petitioner following the finalization of the assessment for the year 2012-13.

The learned Government Pleader informed the court that the assessment of the petitioner for the year 2012-13 was pending finalization. It was mentioned that once the assessment was finalized, the amounts due from the petitioner would be adjusted against the refund amounts, with the balance to be refunded. The court directed the 1st respondent to consider and pass orders on the petitioner's representation to finalize the refund claim status. The judgment emphasized the need for the 1st respondent to calculate the refund amount due to the petitioner, including interest, and deduct any amounts owed by the petitioner post-assessment finalization, ensuring the prompt refund of the balance to the petitioner.

Overall, the High Court's judgment addressed the petitioner's grievance regarding the inaction of the respondent in issuing the refund of excess KVAT paid in the past. By directing the 1st respondent to process the petitioner's representation, compute the refund amount with interest, and deduct any liabilities post-assessment finalization, the court ensured a fair resolution of the refund claim. The judgment aimed to expedite the refund process and uphold the petitioner's entitlement to the refund amount, providing clarity on the computation and disbursement of the refund.