2017 (5) TMI 1061 - HC - VAT and Sales Tax

Refund claim - C-Form in original - demand of documents was not for the purpose to frame fresh default assessments of tax and interest - Held that - The Court clarifies that if no further documents from the side of the Petitioner are required to be submitted then the DVAT Department should proceed to pay the amount of refund together with interest for the undisputed period to the extent it is not disputed and does not relate to the statutory forms - petition disposed off.

Summary

Issues:
Refund claim processing, submission of C-Form, interpretation of court orders by D-VAT Department, payment of refund with interest, compliance timeline.

Refund Claim Processing:
The Petitioner had submitted all required documents to the Delhi Value Added Tax (D-VAT) Department for processing its refund claim. However, the D-VAT Department insisted that the original C-Form had not been submitted. The counsel for the Petitioner argued that a previous judgment had rejected this argument, but it was stayed by the Supreme Court. The Court clarified that if no further documents were needed from the Petitioner, the D-VAT Department should proceed to pay the refund amount with interest for the undisputed period within two weeks without requiring additional compliance.

Interpretation of Court Orders:
There was an apprehension that the D-VAT Department was misinterpreting court orders to request the production of all account books and registers to frame fresh default tax assessments. The Court clarified that the earlier orders did not intend for such extensive document submission. It directed the D-VAT Department to pay the refund amount related to undisputed periods promptly and without unnecessary compliance requirements.

Payment of Refund with Interest:
The Court specified that the D-VAT Department should pay the refund amount with interest for undisputed periods promptly. For amounts related to statutory forms and accrued interest, payment should be made within four weeks after the disposal of the Supreme Court Special Leave Petition (SLP) if the Department does not succeed in the SLP against the previous court order.

Compliance Timeline:
The Court directed the D-VAT Department to adhere to the specified timelines for refund payment. If the Petitioner faced any issues regarding non-payment of the refund amount or non-compliance with the Court's directions, they were granted the right to seek appropriate legal remedies. The petition was disposed of, and the order was to be given dasti.