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2019 (2) TMI 1437 - HC - VAT and Sales TaxInterest on the deposited amount as sales tax - C-Forms - CST Act, 1956 - Held that - We dispose of the present petition by directing respondent No.3 to take a decision on the representation dated 17.5.2018 (Annexure P-5), in accordance with law by passing a speaking order and after affording an opportunity of hearing to the petitioner within a period of one month from the date of receipt of the certified copy of the order.
Issues:
- Petition for mandamus to release interest on deposited amount as sales tax. Analysis: The petitioner filed a writ petition under Articles 226/227 of the Constitution of India seeking a writ of mandamus directing the respondents to release the interest on the deposited amount as sales tax. The case involved M/s Shivam Corporation, which purchased cotton yarn from an exempted unit during 2000-01 and conducted sales of a significant amount during Intra State Sales. The Assessing Authority initially allowed these sales as exempted but the Revisional Authority later revised the order and assessed a tax amount under the Central Sales Tax Act, 1956. The petitioner filed various appeals and ultimately the Apex Court allowed the appeals, stating that no tax was liable under the Act on goods manufactured by an exempted unit holding valid exemption. Subsequently, the petitioner sought a refund of the tax amount and also claimed interest on the deposited amount. The petitioner's counsel submitted that despite sending representations and reminders to the concerned respondent, no action had been taken on the claim for interest on the deposited amount. After hearing the petitioner's counsel, the High Court disposed of the petition by directing the respondent to decide on the representation within one month, pass a speaking order, and provide an opportunity of hearing to the petitioner. The court further directed that if the petitioner was found entitled to the interest amount, it should be paid within the next month in accordance with the law. In conclusion, the judgment addressed the issue of releasing interest on the deposited amount as sales tax. The High Court directed the concerned respondent to decide on the representation and, if the petitioner was entitled to the interest amount, to pay it within a specified timeframe.
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