2019 (11) TMI 898 - HC - VAT and Sales Tax

Refund of payment with interest - delay in submitting TDS certificates - finalization of assessments got delayed - HELD THAT - It is evident that assessments for the years 2009 till 2014 i.e. five assessment years, have been finalized vide various orders, three of which are dated 04.11.2019. It has further been averred in the chart that for the remaining two years i.e. 2014-15 and 2015- 16, the assessment orders are likely to be finalized by 31.12.2019. Still further, it has been averred that notice has been issued and served upon the respondents to fix the hearing for 18.11.2019, for finalization of the above assessments of two financial years. Respondents No.1 to 4 are directed to ensure that the amount so ordered to be refunded to the petitioner in the assessment orders for assessment years 2009-10 upto 2013-14, be released forthwith, maximum within three weeks from the date of receipt of certified copy of this order by the respondents - petitioner is directed to co-operate with the authorities in finalization of the assessment proceedings for the years 2014-15 and 2015-16, by not only being present on 18.11.2019 (the date fixed for the same), but also to supply desired documents required for verification by the Assessing Officer.

Summary

Issues:
Refund of excess VAT deducted by government work contractor for eight years.

Analysis:
The petitioner, a government work contractor, filed a writ petition seeking a refund of ?3,06,20,124 with interest for excessive VAT deductions made by the Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL). The petitioner contended that VAT should only be deducted on material supplied, not on labor work, as per the Punjab Value Added Tax Act, 2005. The respondents did not dispute the facts but mentioned that the petitioner needed to submit TDS certificates for verification. Assessments for the years 2009-2014 were finalized, and for 2014-15 and 2015-16, the proceedings were to be completed by 31.12.2019. The Additional Advocate General assured that refunds due would be processed promptly.

The Court directed the respondents to release the refunds due for the years 2009-2014 within three weeks and finalize assessments for 2014-15 and 2015-16 by 31.12.2019. Any refund orders for these years were to be processed within three weeks of assessment. The petitioner was granted liberty to appeal under Section 62 of the PVAT Act, 2005 if dissatisfied. Cooperation from the petitioner was requested for the assessment proceedings by attending hearings and providing necessary documents.

In conclusion, the Court disposed of the writ petition with directions for prompt refund release, finalization of pending assessments, and granting the petitioner the right to appeal if needed. Cooperation from both parties was emphasized for a smooth resolution of the matter.