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2017 (5) TMI 657 - HC - VAT and Sales TaxValidity of notice issued by VATO u/s 59(2) of the DVAT Act, 2004 - refund - Held that - The Court is of the view that the VATO in question who had first to record the reasons in file before issuing the notice u/s 59(2) of the DVAT Act failed to do so. It reflects lack of knowledge of the basic requirement of law prior to the exercise of statutory powers. There is no barrier to processing the claim for refund. If the VATO requires any document then he will inform the Petitioner in writing not later than one week from today. It is made clear that in any event the VATO will process the refund claim and pass appropriate orders for payment of the refund and interest directly into the Petitioner s account not later than ten days thereafter. Petition allowed - decided in favor of petitioner.
Issues: Inspection of relevant file for VAT notice issuance under Section 59(2) of DVAT Act, lack of recording reasons by VATO, need for orientation course for officers, setting aside notice, refund application processing, timeline for refund payment, compliance by DVAT Department.
In the present case, the petitioner conducted an inspection of the relevant file and noted the absence of a notice under Section 59(2) of the DVAT Act for the first quarter of 2015-16. The court acknowledged the lack of proper documentation and reasoning by the VATO before issuing the notice, emphasizing the necessity of understanding statutory powers and procedures. It was highlighted that officers must undergo orientation courses to familiarize themselves with the law and the importance of recording reasons before exercising statutory powers. The court, due to the VATO's failure to follow necessary procedures, set aside the notice issued under Section 59(2) of the DVAT Act for the I and II quarter of 2015-16. Additionally, the petitioner's application for a refund was not entertained by the VATO, prompting the court to direct the VATO to process the refund claim without delay. The VATO was instructed to inform the petitioner if any additional documents were required within a week, with a clear mandate to process the refund and interest payment directly into the petitioner's account within ten days. Furthermore, the court directed the DVAT Department to adhere to the specified timelines for refund processing and payment. If the petitioner faced any issues with non-compliance or non-payment, they were granted the right to seek appropriate legal remedies. Ultimately, the petition was disposed of, concluding the legal proceedings related to the inspection of the file, notice issuance, refund application, and compliance by the concerned authorities.
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