2019 (5) TMI 756 - HC - VAT and Sales Tax

Refund claim - adjustment of the refunds due to him, towards the dues - HELD THAT - The Writ Petition is disposed of directing the Commercial Tax Officer to consider the letter of the petitioner dated 25.04.2016 and take appropriate action in accordance with law and pass orders within a period of two weeks from the date of receipt of a copy of this order. The letter dated 25.04.2016 sent by the petitioner to the Commercial Tax Officer is on record.

Summary

Issues:
1. Dispute over demand and garnishee order under A.P. Revenue Recovery Act.
2. Petitioner's claim of refund adjustment towards current demand.
3. Verification of figures by the Department.
4. Direction to consider petitioner's request for adjustment.
5. Suspension of garnishee notice pending verification.
6. Future action based on verification results.

Analysis:
1. The judgment deals with a writ petition filed by a dealer under the Telangana Value Added Tax Act, 2005, challenging a demand and garnishee order under the A.P. Revenue Recovery Act. The petitioner's primary grievance is the department's failure to adjust the refundable amount of ?62,82,490 towards the current demand before initiating recovery proceedings.

2. The court noted that the assessment order had achieved finality, and the petitioner claimed a refund to be adjusted against the outstanding demand. The Special Standing Counsel for the Department acknowledged the petitioner's request for adjustment made on 25.04.2016 and agreed that the figures needed verification.

3. In response to the petitioner's claim, the Department stated that the figures provided required verification. However, they acknowledged the petitioner's request for adjustment of refunds towards the dues payable. The court directed the Commercial Tax Officer to consider the petitioner's letter dated 25.04.2016 and take necessary action within two weeks from the receipt of the court's order.

4. The court disposed of the writ petition, instructing the Commercial Tax Officer to review the petitioner's request and issue orders accordingly. The garnishee notice was suspended pending the outcome of the verification process. If the liability is entirely offset by the refund, the garnishee notice will be set aside. If a balance remains, the notice will be reinstated to the limited extent of the remaining amount.

5. The judgment also specified that any pending miscellaneous petitions related to the writ petition would be closed. No costs were awarded in the case. The court's decision aimed to address the petitioner's concerns regarding the adjustment of refunds towards the outstanding demand and ensure proper verification of the figures before proceeding with recovery actions.