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2019 (5) TMI 1043 - HC - VAT and Sales TaxRefund of pre-deposit alongwith interest - interest from date of refund OR from date of filing Form DVAT-21 - HELD THAT - Issue decided in the case of SHAILA ENTERPRISES VERSUS COMMISSIONER OF VALUE ADDED TAX 2016 (8) TMI 426 - DELHI HIGH COURT , where it was held that refund is to be allowed - Accordingly, as far as the refund by the Revenue in the sum of ₹ 2 lacs of the Petitioner is concerned, it is directed that it shall be done forthwith, and in any event, not later than 31st May, 2019. Interest on refund - HELD THAT - It is directed that simple interest will be paid by the Respondents on the aforementioned sum of ₹ 2 lacs for the period from 15th February, 2019, till the date of actual refund @ 6% per annum - As regards the interest for the period 4th July, 2018 till 15th February, 2019, it will await the decision of the Supreme Court in THE COMMISSIONER OF TRADE AND TAXES ANR. VERSUS M/S MRF LIMITED 2018 (12) TMI 592 - SC ORDER . Petition disposed off.
Issues:
Refusal to refund pre-deposit amount along with interest for specific tax periods. Analysis: The Petitioner, registered under the DVAT Act and CST Act, challenged demands raised for the tax periods of March 2010-11 and 2011-12, amounting to substantial sums including tax, interest, and penalties. The Petitioner objected to these orders under Section 74 of the DVAT Act, leading to a pre-deposit requirement of ?2 lacs set by the Objection Hearing Authority (OHA) for appeal consideration. After complying with the pre-deposit condition, the objections were allowed, and the assessment orders were set aside on 4th July 2017, with a direction for fresh assessment by the Value Added Tax Officer (VATO). Subsequently, the VATO failed to initiate assessment or pass any order despite multiple appearances by the Petitioner's authorized representative with necessary documents. As the one-year limitation period for fresh assessment lapsed on 4th July 2018, rendering the demands unenforceable, the Petitioner sought a refund of the pre-deposit through Form DVAT-21 filed on 15th February 2019, leading to the present petition. Referring to a previous court order and a Supreme Court dismissal of an appeal by the Respondents, the Court affirmed the Petitioner's entitlement to the refund of ?2 lacs, directing its immediate release by 31st May 2019. Regarding the interest on the refunded amount, a dispute arose between the parties. The Petitioner cited a judgment for interest accrual from 4th July 2018, while the Respondents argued for interest calculation from the filing date of DVAT-21 on 15th February 2019, supported by a stay order on the previous judgment pending appeal. The Court resolved the interest issue by directing the payment of simple interest at 6% per annum on the ?2 lacs from 15th February 2019 until the actual refund date. However, interest calculation for the period between 4th July 2018 and 15th February 2019 was deferred pending the Supreme Court's decision on the appeal related to the interest matter. Additionally, the Court ordered the removal of the demand raised against the Petitioner from the DVAT portal of the Respondents, concluding the petition without imposing any costs.
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