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2019 (6) TMI 1360 - HC - VAT and Sales TaxRefund alongwith interest - pendency of SLP before Supreme Court - condonation of delay in filing appeal - Time limitation - HELD THAT - The issue with regard to the entitlement of the claim of interest on refund under section 54(1)(aa) of the Gujarat Sales Tax Act, 1969 came to be set at rest by this Court in June, 2018. However, the SLP came to be preferred in April, 2019. We are informed that the Supreme Court has condoned the delay and the SLP has now been ordered to be posted for hearing. For the present, we adjourn this matter to 03/07/2019 . However, if there is no further development in the Supreme Court, then we may consider to direct the respondents - State to deposit the requisite amount either with the tribunal or with the registry of this Court.
Issues: Entitlement of interest on refund under section 54(1)(aa) of the Gujarat Sales Tax Act, 1969; Delay in filing Tax Appeals; Stay of operation of the order dated 29/06/2018.
Entitlement of interest on refund under section 54(1)(aa) of the Gujarat Sales Tax Act, 1969: The judgment addresses the issue of entitlement to interest on refund under section 54(1)(aa) of the Gujarat Sales Tax Act, 1969. The State filed Tax Appeals against the Tribunal's order directing the refund of the amount with interest. The Court observed that the State delayed filing the appeals by three years after the Tribunal's directions in 2015. The Court dismissed the Tax Appeals in June 2018, upholding the Tribunal's decision. The State argued that the case was distinguishable from previous decisions granting interest on refunds. However, the Court found that the facts aligned with the previous cases, allowing the Dealer to claim a refund of the differential amount and interest. The issue was settled by the Court in June 2018, but the State filed a Special Leave Petition (SLP) in April 2019, which was now set for hearing in the Supreme Court. Delay in filing Tax Appeals: The judgment highlights the delay by the State in filing Tax Appeals challenging the Tribunal's order. Despite the Tribunal's directions in 2015, the State filed the appeals three years later. The Court noted the delay and ultimately dismissed the Tax Appeals in June 2018. The State's argument that the case was different from previous decisions granting interest on refunds was rejected by the Court, emphasizing that the Dealer was entitled to the refund and interest as per the Tribunal's order and previous legal precedents. Stay of operation of the order dated 29/06/2018: The judgment discusses the possibility of the Supreme Court granting a stay on the operation of the order dated 29/06/2018 passed by the High Court. The State informed the Court that the SLP was likely to be heard by the Supreme Court on an urgent basis. The Court acknowledged the potential for an interim order from the Supreme Court but noted that as of the current date, the State had not complied with the directions to pay the requisite amount with applicable interest for over five years. The Court adjourned the matter to a later date pending further developments in the Supreme Court, indicating a possible direction for the State to deposit the required amount either with the tribunal or the High Court registry if there were no changes in the Supreme Court proceedings.
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