2020 (6) TMI 522 - HC - VAT and Sales Tax

Adjustment of amount to be refunded with the dues under CST for arrears of tax for the assessment years - HELD THAT - The present writ petition is pending for last 7 years before this court. During the interregnum the petitioner has fallen in arrears of tax for the above mentioned assessment years under the Central Sales Tax Act, 1956. Therefore, there are no reasons to grant relief to the petitioner at the stage as these appeals itself can be directed to be disposed by the Sales Tax Appellae Tribunal, Coimbatore within a period of 6 months from date of this order. The respondent shall refund the amount forthwith after due adjustments of any tax if any that may be due from the petitioner - Petition disposed off.

Summary

Issues:
Challenge to impugned order adjusting tax refund for arrears under CST for specific assessment years.

Analysis:
The petitioner challenged an order adjusting the amount to be refunded for the assessment year 2004-2005 under TNGST for arrears of tax under CST for the years 1999-2000, 2000-2001, and 2004-2005. The petitioner argued that adjusting the amount pending appeal disposal is impermissible for arrears under CST. The respondent, however, justified the adjustment under the Central Sales Tax Act, 1956. The court noted that appeals for the relevant assessment years were pending before the Sales Tax Appellate Tribunal since 2014 and 2017. Despite merits in the petitioner's submissions, the court observed that the petitioner had fallen into arrears of tax during the pendency of the writ petition. Consequently, the court directed the Sales Tax Appellate Tribunal to dispose of the pending appeals within six months from the date of the order.

The court emphasized that if the petitioner succeeds in the appeals, the respondent must refund the amount with due adjustments. The petitioner would also be entitled to interest on the delay at the same rate as arrears of tax collection by the respondents. The court's directions included instructing the Sales Tax Appellate Tribunal to expedite the disposal of the petitioner's appeals within six months. The respondent was directed to refund the amount subject to the appeal outcomes. The Registry was tasked with communicating the order to the Tribunal for listing the appeals for speedy disposal. The petitioner was permitted to serve a certified copy of the order to the Tribunal for the same purpose.

In conclusion, the writ petition was disposed of with the mentioned directions, and no costs were imposed. The connected Miscellaneous Petition was closed accordingly.