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2022 (5) TMI 1197 - HC - VAT and Sales TaxClaim of interest Refund of VAT - delay in furnishing the declaration i.e. C-Forms to be factored in while calculating interest - Section 38(3)(a)(ii) of the DVAT Act. - HELD THAT - The respondent/revenue has carried the matter in appeal to the Supreme Court. The Supreme Court, via order dated 01.02.2017, passed in VIZIEN ORGANICS, M/S MUNSHI RAM RAM PARKASH, MANGLA ENTERPRISES, DHANJAL ENGG. WORKS, M/S GOEL OIL COMPANY, M/S ARUN ELECTRONICS, POWER INDUSTRIES PROPRIETO SH. TARUN BANSAL, M/S. LUDHIANA AUTO SUPPLY CO., VERSUS COMMISSIONER, TRADE TAXES ANR. 2017 (1) TMI 1168 - DELHI HIGH COURT has stayed the operation of the aforementioned judgment rendered by the coordinate bench. The present writ petition is disposed off, with the caveat that the petitioner s claim concerning the remaining interest would be processed and shall be paid, in case the respondent/revenue was to fail in the aforementioned SLP.
Issues:
1. Calculation of interest on a refund amount under Section 42(1) of the DVAT Act. 2. Dispute regarding the start date for the calculation of interest under Section 38(3)(a)(ii) and Section 42 of the DVAT Act. 3. Consideration of delay in furnishing C-Forms for interest calculation under Section 38(7)(d) of the DVAT Act. 4. Impact of previous judgments and Supreme Court stay order on similar issues. Analysis: Issue 1: Calculation of interest on a refund amount under Section 42(1) of the DVAT Act: The petitioner sought a refund and interest on the refund amount as per Section 42(1) of the DVAT Act. The respondent approved a refund order and interest amounting to Rs. 66,037 based on calculations provided in the speaking order dated 11.05.2022. The interest was calculated at a rate of 6% per annum for a specific period, resulting in the approved interest amount. Issue 2: Dispute regarding the start date for the calculation of interest under Section 38(3)(a)(ii) and Section 42 of the DVAT Act: A disagreement arose between the petitioner and the respondent regarding the start date for calculating interest. The respondent argued that interest should commence from 16.03.2021, the date of the assessment order, as per Section 42 of the DVAT Act. In contrast, the petitioner contended that interest should start from two months after the date of filing the return, i.e., 02.05.2017, as per Section 38(3)(a)(ii) read with Section 42 of the DVAT Act. Issue 3: Consideration of delay in furnishing C-Forms for interest calculation under Section 38(7)(d) of the DVAT Act: The respondent highlighted the impact of delay in furnishing C-Forms on interest calculation under Section 38(7)(d) of the DVAT Act. However, the petitioner disagreed, citing the explanation appended to the second proviso to Section 42(1) of the DVAT Act. The petitioner argued that interest should be calculated from the date specified in Section 38(3)(a)(ii) and any delay attributable to the petitioner should be excluded. Issue 4: Impact of previous judgments and Supreme Court stay order on similar issues: Both parties acknowledged that similar issues were addressed in previous writ petitions before the court. The judgment in a related case rendered on 19.01.2017 was stayed by the Supreme Court on 01.02.2017. Considering the precedent set by other judgments, the court decided to dispose of the present writ petition with the understanding that the petitioner's remaining interest claim would be processed and paid if the respondent failed in the ongoing appeal. In conclusion, the court resolved the matter based on the interpretations of relevant sections of the DVAT Act, previous judgments, and the pending appeal before the Supreme Court, ensuring fair consideration of the petitioner's refund and interest claims.
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