2018 (10) TMI 686 - HC - VAT and Sales Tax

Demand of Interest under Section 24(3) of the TNGST Act, on or before 19.03.2010 - deletion of condition contained in Clause 3 of the eligibility certificate dated 05.05.1999 regarding sales tax benefit - refund of excess tax collected under protest alongwith penal interest - Held that - This Court directs the respondents to consider the representation of the petitioner dated 02.04.2010, if not considered earlier, and pass appropriate orders, on merits and in accordance with law, after affording an opportunity of personal hearing to the petitioner, within a period of six weeks from the date of receipt of a copy of this order.

Summary

Issues:
1. Quashing of notice directing payment of interest under Section 24(3) of the TNGST Act.
2. Deletion of condition in eligibility certificate restricting sales tax benefit.
3. Refund of excess tax collected along with penal interest.

Analysis:
1. The petitioner sought to quash a notice directing payment of interest under Section 24(3) of the TNGST Act. The counsel referred to a Division Bench decision where it was held that the petitioner was entitled to waiver of sales tax without restrictions. The Court directed the respondents to consider the petitioner's representation and pass appropriate orders within six weeks, considering the earlier decision and a similar writ petition.

2. The petitioner also sought the deletion of a condition in the eligibility certificate restricting sales tax benefits. The Division Bench decision was cited, emphasizing that the petitioner should receive the maximum waiver without limitations. The Court directed the respondents to consider the petitioner's representation and pass orders accordingly, keeping in mind the previous decision and the order in a similar case.

3. Additionally, the petitioner requested a refund of excess tax collected along with penal interest. The Court directed the respondents to consider the petitioner's representation, ensuring a personal hearing and passing orders within six weeks, in line with the Division Bench decision and a previous order in a similar case. The writ petition was disposed of without costs.