2020 (11) TMI 509 - HC - VAT and Sales Tax

Refund of Input Tax Credit - amount to be carried forward by way of TRAN-1 Return - HELD THAT - This petitioner has preferred the writ petition for directions to the respondent to pay ₹ 3,14,284/- for the input tax credit alongwith interest under Section 38 of Delhi Value Added Tax Act, 2004. There is also alternative prayer for allowing the aforesaid amount i.e. ₹ 3,14,284/- to be carried forward by way of TRAN-1 Return. The concerned respondents-authorities are directed to decide the application of this petitioner for refund of input tax credit for ₹ 3,14,284/- in accordance with law, rules, regulations and government policies applicable to the facts of the case. The respondent authorities will also keep in mind the decision rendered in W.P, if applicable, and will also keep in mind the alternative prayers in this writ petition. Petition disposed off.

Summary

Issues:
- Petition for refund of input tax credit under Section 38 of DVAT Act, 2005
- Alternative prayer for carrying forward the amount by way of TRAN-1 Return
- Delay in deciding the application for refund by the respondent authorities

Analysis:
The petitioner filed a writ petition seeking a refund of ?3,14,284 along with interest under Section 38 of the Delhi Value Added Tax Act, 2004. Additionally, an alternative prayer was made to allow the amount to be carried forward through a TRAN-1 Return. The petitioner claimed similarity to another case decided on 05.10.2020 and urged for a similar outcome. The Court noted the submissions and directed the respondent authorities to decide on the application for refund in accordance with the law, rules, regulations, and government policies applicable to the case. The authorities were instructed to consider the previous judgment and the alternative prayers presented in the writ petition. Importantly, the Court clarified that it did not assess the merits of the petitioner's claim.

The Court emphasized expeditious decision-making by the respondent authorities, setting a preferred timeline of four weeks from the date of receiving the court's order. With these instructions and observations, the writ petition was disposed of, providing a clear directive for the respondent authorities to address the petitioner's refund application promptly and in compliance with relevant legal provisions.