2020 (7) TMI 552 - HC - VAT and Sales Tax

Disbursement of Refund amount - assessment year 2008-2009 - HELD THAT - In the counter affidavit filed by the respondents, the liability to make refund is admitted. Therefore, the reason now stated through the learned Special Government Pleader cannot be accepted. The respondents are directed to make the petition mentioned refund to the petitioner without any delay. Of course the respondents will also be liable to pay the said amount along with statutory interest. This amount shall be paid within a period of twelve weeks from the date of receipt of a copy of this order. Petiton allowed.

Summary

Issues: Delay in refund of excess tax amount under Tamil Nadu Value Added Tax Act 2006 for assessment year 2008-2009.

Analysis:
1. The petitioner, a contractor, was initially assessed in Karur circle for the assessment year 2008-2009. The assessing authority was required to refund an amount of ?1,14,89,741 to the petitioner.

2. The petitioner's counsel highlighted Form-P issued by the first respondent on 12.10.2011, indicating the refund amount to be disbursed within 90 days as per Section 42(5) of the Tamil Nadu Value Added Tax Act 2006.

3. The petitioner shifted assessment to the third respondent, leading to non-payment of the refund amount. Despite representations and reminders by the petitioner, the refund was not processed, prompting the filing of a writ petition.

4. The first respondent, in the counter affidavit, acknowledged the petitioner's status as an assessee with the third respondent and the availability of assessment files with both respondents, attributing the delay to the involvement of a substantial amount.

5. During the hearing, the Special Government Pleader cited the age of the assessment year as a reason for the delay in tracing the file for refund processing, committing to make the refund once the file is located.

6. The Court found the authorities' explanation unsatisfactory, noting the genuineness of Form-P and the admission of liability for the refund in the respondents' counter affidavit. Consequently, the Court directed the respondents to refund the amount along with statutory interest within twelve weeks from the date of the order.

7. The Court allowed the writ petition, emphasizing the respondents' obligation to promptly process the refund and pay the amount due, including the statutory interest, within the stipulated timeframe.