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2017 (6) TMI 255 - HC - VAT and Sales TaxJurisdiction of Assistant Value Added Tax Officer (AVATO) - reopening of assessment during pendency of a refund application - Section 9(2)(g) of the DVAT Act - Held that - Creation of such a demand when refund is overdue is clearly contrary to the order of this Court in I Smart Mobile Technology Private Limited vs. Commissioner of VAT 2017 (5) TMI 656 - DELHI HIGH COURT - the notice dated 22nd May, 2017 of default assessment of tax and interest u/s 32 of the DVAT Act issued by the AVATO is hereby set aside - petition allowed - decided in favor of petitioner.
Issues:
1. Refund application pending with DVAT Department leading to creation of further demand. Analysis: The High Court addressed the issue of the DVAT Department creating a demand despite the pendency of a refund application by the Petitioner. The Court highlighted previous orders emphasizing that the refund application should not be seen as an opportunity to create additional demands. The Assistant Value Added Tax Officer (AVATO) was found to have issued a notice of default assessment of tax and interest, creating a demand of ?1,66,625, which was deemed contrary to the Court's previous orders. The Petitioner, engaged in trading in Aluminium and registered with the DVAT Department, had filed a return claiming a refund of ?7,91,585 for a specific period. Despite the refund becoming due on a specified date, the refund was not granted, leading to the filing of the present petition. The Court noted that the AVATO's actions were in violation of the DVAT Act and set aside the notice of default assessment. The Court ordered the DVAT Department to issue the refund order within four weeks and deposit the refund amount along with interest directly into the Petitioner's account within one week thereafter. Emphasizing compliance, the Court directed the DVAT Department to adhere to the timeline provided. Additionally, the Petitioner was granted the right to seek appropriate remedies if there were any grievances regarding non-payment of the refund or non-compliance with the Court's directions. In conclusion, the petition was disposed of with the Court's directions for the DVAT Department to process the refund promptly and in accordance with the law, ensuring the Petitioner receives the overdue refund without further delay.
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