9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1057 - HC - VAT and Sales TaxRefund of Amount unauthorisedly deducted as tax under VAT - Whether the amount should be in U.S. Dollars or in Rupees? - HELD THAT - It is nobody‟s case that the State had directed ONGC to mandatorily carry out deductions under the TVAT Act. Such deductions were carried out by ONGC of its own interpretation of the statute. It could have released the amount to the petitioner - It is out of contractual contract between the petitioner and ONGC. Hence, to contend that the only currency acceptable by the State towards deposit of tax being Indian currency, ONGC had no option but to deposit the tax amount by converting US Dollars to Indian currency at the prevailing rates and thus ONGC had no role in the collection and deposit of the tax is not correct. The question of law posed in the present petition, to be no longer res integra. In FORASOL VERSUS OIL NATURAL GAS COMMISSION (ONGC) 1983 (10) TMI 234 - SUPREME COURT the Apex Court, under similar circumstances, directed the very same respondent i.e. ONGC to refund the amount in terms of currency agreed upon by the parties. The petitioner shall be entitled to take credit of the amount in terms of Memorandum dated 16th June, 2017 - The difference in the exchange rate in terms of fluctuation in the Dollar vis-a-vis Indian Rupee, shall however be made good by ONGC. This also has to be in US Dollars, and the rate prevalent as on the date of payment. Application disposed off.
Issues Involved:
1. Entitlement of the petitioner to receive the amount unauthorisedly deducted as tax in the agreed currency. 2. Challenge to the Memorandum for refund issued by the Finance Department. 3. Dispute over the currency for refund - US Dollars or Rupees. 4. Obligations under the agreement between the petitioner and ONGC. 5. Legal implications of tax deductions under the Tripura Value Added Tax Act. 6. Currency for payment and refund as per the agreement terms. 7. Role of the State and ONGC in the tax deductions and refund process. 8. Precedents related to currency conversion in contractual matters. Detailed Analysis: 1. The primary issue in the present petition is whether the petitioner is entitled to receive the amount deducted as tax in the currency agreed upon by the parties. The petitioner challenges the Memorandum issued by the Finance Department for a refund of the deducted amount under the Tripura Value Added Tax Act. 2. The main contention revolves around the currency for refund, whether it should be in US Dollars as per the agreement terms or in Indian Rupees. The petitioner asserts their entitlement to the refund amount, which is not in dispute, but the currency remains a point of contention. 3. The agreement between the petitioner and ONGC stipulated all payments in US Dollars, including the bank guarantee provided by the petitioner. However, ONGC deducted tax payments under the TVAT Act in Indian Rupees, leading to the current dispute over the currency for refund. 4. The court notes that the State and ONGC had the option to seek clarification on tax deductions but proceeded with the deductions in Indian Rupees. The contractual obligations between ONGC and the petitioner are emphasized, indicating that the dispute primarily lies between the two parties. 5. Precedents such as the Forasol case highlight the importance of honoring the currency agreed upon in contracts, emphasizing the need for stability and certainty in payment terms. The court reiterates the principle that the petitioner is entitled to refund in the agreed currency. 6. The judgment directs ONGC to release the refund amount to the petitioner in US Dollars, compensating for any exchange rate differences. Interest entitlement is clarified from the date of dismissal of the Civil Appeal, and the inter se dispute between ONGC and the State is left open for future adjudication if necessary. 7. The court's decision ensures that the petitioner receives the refund in the agreed currency, upholding the contractual terms between the parties. ONGC is directed to comply with the refund terms within a specified timeframe, with pending applications also being resolved.
|
