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2023 (8) TMI 935 - SCH - VAT and Sales TaxRejection of refund application - Assessment order set aside - HELD THAT - By the order impugned before the High Court, the authority rejected the application for refund. The respondent filed a writ petition challenging such rejection before the High Court of Punjab and Haryana. The Division Bench of the High Court examined the matter and having considered the order rejecting the refund came to the conclusion that there are no reasons accompanying the decision taken and following the decision in the case of SADHU OVERSEAS VERSUS STATE OF HARYANA AND ANOTHER 2007 (9) TMI 575 - PUNJAB AND HARYANA HIGH COURT as well as RATTI WOOLLEN MILLS VERSUS STATE OF PUNJAB AND OTHERS 2007 (2) TMI 587 - PUNJAB AND HARYANA HIGH COURT , the High Court allowed the writ petition(s) and directed the refund to be made. Further, the High Court directed that the interest shall be calculated at a statutory rate of 12 per cent for the first month of delay and at the rate of 18 per cent per annum in respect of delay caused for the subsequent months. The interest payable confined to 12 per cent per annum for the entire period - application disposed off.
Issues involved:
The issues involved in the judgment are the finalization of assessment for the year 2002-2003, creation of additional demand under the Haryana General Sales Tax Act, 1973 and the Central Excise Act, 1944, appeal against the assessment order, rejection of application for refund, challenge of rejection before the High Court, and the calculation of interest on the refunded amount. Assessment Finalization and Additional Demand: The assessment for the year 2002-2003 was finalized, resulting in an additional demand of Rs. 1,49,69,527 under the Haryana General Sales Tax Act, 1973 and the Central Excise Act, 1944. Appeal and Refund Application: The respondent appealed the assessment order, leading to the acceptance of the appeal by the appellate authority. Subsequently, the respondent applied for a refund of the amount deposited after the assessment was quashed and remanded back to the assessing authority. High Court Proceedings and Refund Decision: The authority rejected the application for refund, prompting the respondent to file a writ petition challenging the rejection before the High Court of Punjab and Haryana. The High Court, after examining the matter, allowed the writ petition and directed the refund to be made, citing previous decisions in similar cases. Interest Calculation and Decision: The High Court directed the calculation of interest at a statutory rate of 12 per cent for the first month of delay and 18 per cent per annum for subsequent months. The principal amount was refunded earlier, leaving the issue of interest to be resolved. The Supreme Court upheld the High Court's decision regarding the refund but confined the interest payable to 12 per cent per annum for the entire period. The Court further directed the amount to be returned within four months. Conclusion: The civil appeal was dismissed, and the interest payable was fixed at 12 per cent per annum for the entire period. The Court directed the return of the amount within four months and disposed of any pending applications.
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