2020 (1) TMI 709 - HC - VAT and Sales Tax

Refund claim alongwith interest - Section 42 of the Delhi Value Added Tax Act - case of petitioner is that direction to be given to the respondent no.3/ Value Added Tax Officer to decide the claim and refund of the petitioner within the stipulated time in accordance with law - HELD THAT - The respondent no.3/ Value Added Tax Officer , Ward 80, I.P. Estate, New Delhi are directed to decide the claim and refund of the petitioner in accordance with rules, regulations and Government policies applicable to the facts of the case and also keeping in mind principle of unjust enrichment - petition disposed off.

Summary

Issues:
1. Refund of VAT amount for specific periods.
2. Direction to Value Added Tax Officer for timely decision.
3. Application of principle of unjust enrichment in the case.

Refund of VAT amount for specific periods:
The petitioner filed a petition seeking a refund of ?1,72,20,572 for various periods under the Delhi Value Added Tax Act. The counsel for the petitioner requested a direction to the Value Added Tax Officer to decide on the claim and refund within a stipulated time. The court, after hearing both parties, directed the Value Added Tax Officer to decide on the claim and refund in accordance with the law, rules, regulations, and government policies applicable to the case. The court specifically mentioned the principle of unjust enrichment as propounded by the Hon'ble Supreme Court in the case of Mafatlal Industries vs. Union of India. The court ordered the decision to be made as early as possible, preferably within 12 weeks from the date of receipt of the court's order.

Direction to Value Added Tax Officer for timely decision:
The court, after considering the submissions from both parties, directed the Value Added Tax Officer, specifically mentioning the officer at Ward 80, I.P. Estate, New Delhi, to decide on the claim and refund of the petitioner within a period of 12 weeks from the date of receipt of the court's order. The court emphasized that the decision should be made in accordance with the rules, regulations, and government policies applicable to the case. This direction was given to ensure a timely resolution of the refund claim and to avoid any delays in the process.

Application of principle of unjust enrichment in the case:
In the judgment, the court referred to the principle of unjust enrichment as laid down by the Hon'ble Supreme Court in the case of Mafatlal Industries vs. Union of India. The court directed the Value Added Tax Officer to consider this principle while deciding on the claim and refund of the petitioner. By invoking this principle, the court aimed to ensure that the refund process is carried out fairly and in compliance with legal standards, thereby preventing any unjust enrichment to the petitioner. The court's decision to apply this principle reflects a commitment to upholding legal principles and ensuring justice in the resolution of the VAT refund claim.