2019 (11) TMI 946 - HC - VAT and Sales Tax

Actual entitlement of interest - Rate of interest - HELD THAT - The Petitioner's claim for interest at the rate of 12% per annum certainly cannot be accepted - So also, the Petitioner cannot insist for interest at the rate of 8% per annum, which is otherwise statutory prescribed rate of interest in terms of the said Act. Upon cumulative consideration of all the aforesaid circumstances, we feel that the interest at the rate of 4% per annum, will be appropriate in the facts and circumstances of the present case. The Respondents is directed to pay to the Petitioner the interest amount of ₹ 54,62,665/-, as was payable to the Petitioner as on 14th December 2017 together with interest thereon at the rate of 4% per annum to be computed from 14th December, 2017 till the date of actual payment - petition disposed off.

Summary

Issues Involved:
1. Delay and laches in the petition.
2. Entitlement of interest from 2014 to 2017.
3. Interpretation of provisions of Goa Value Added Tax Act, 2005.
4. Claim for interest at the rate of 12% per annum.
5. Claim for interest at the rate of 8% per annum.
6. Determination of appropriate interest rate.

Analysis:

1. Delay and Laches in the Petition:
The court acknowledged the argument raised by the Advocate General regarding the delay and laches in the petition. However, the court found that the claim mainly pertained to interest between 2014 to 2017, supported by correspondence between the petitioner and the respondents. The court deemed it inappropriate to non-suit the petitioner on the grounds of delay or laches. The court clarified that the aspect of delay could be considered during the final hearing for relief.

2. Entitlement of Interest from 2014 to 2017:
The court referred to a previous judgment and order which directed the respondents to pay the petitioner a specific amount as interest up to December 14, 2017. The court upheld this direction and ordered the respondents to pay the specified amount to the petitioner.

3. Interpretation of Provisions of Goa Value Added Tax Act, 2005:
The Advocate General highlighted a dispute regarding the interpretation of provisions of the Goa Value Added Tax Act, 2005. The court noted that the dispute was resolved in a previous judgment and order dated October 16, 2019. The Advocate General reserved the right for the State to challenge this judgment, but the court did not find this as a basis to deny further interest to the petitioner.

4. Claim for Interest at the Rate of 12% per Annum:
The petitioner requested further interest at the rate of 12% per annum from December 14, 2017, until the actual payment of the interest amount. However, the court did not accept this claim and determined that an interest rate of 4% per annum would be appropriate in the present circumstances.

5. Claim for Interest at the Rate of 8% per Annum:
The petitioner could not insist on interest at the statutory prescribed rate of 8% per annum as per the Act. The court considered various factors and circumstances and decided that an interest rate of 4% per annum would be more suitable for the current case.

In conclusion, the court directed the respondents to pay the petitioner the specified interest amount due as of December 14, 2017, along with interest at the rate of 4% per annum from that date until the actual payment, to be made within eight weeks from the date of the judgment. The petition was disposed of accordingly, with no order as to costs.