2024 (9) TMI 1068 - HC - VAT / Sales Tax

Refund claim - misplacement of files by officials leading to delay in payment and reconstruction of files - entitlement to statutory interest on the refund amount - HELD THAT - From the materials on record, it is apparent that the petitioner herein is entitled to the total amount of Rs. 37,87,166/- on account of refunds for the assessment years 1993-94, 1995-96, and 1998-99. The affidavit which has been filed on behalf of the respondent No. 2 does not deny the said figure. It has also been mentioned in the affidavit filed by the respondent No. 2 that the matter has been placed before the Government for approval after being processed from the Office of the Commissioner of Taxes. This Court disposes of the instant writ petition with a direction to the respondents and more particularly the respondent No. 2 to ensure that the payment is made to the petitioner in respect to the amount of Rs. 37,87,166/- within a period of 4 (four) months from the date of a certified copy of the instant order is served upon respondent No.2 - Petition disposed off.

Summary

Issues:
Claim for refund of Rs. 37,87,116 for assessment years 1993-94, 1995-96, and 1998-99. Misplacement of files by officials leading to delay in payment and reconstruction of files. Petitioner's entitlement to statutory interest on the refund amount.

Analysis:
The petitioner claimed a refund of Rs. 37,87,116 for the assessment years 1993-94, 1995-96, and 1998-99. The respondent authorities admitted the petitioner's entitlement to this amount, which was detailed in the judgment. However, the officials of the Finance & Taxation Department of the Government of Assam stated that they lost the files related to the refund applications, causing a delay in payment. The files were later reconstructed after the filing of the writ petition, and the matter was forwarded for approval. The petitioner's counsel argued that the claim of misplaced files was an afterthought to avoid paying statutory interest due to the petitioner. The petitioner had made numerous attempts to communicate with the authorities regarding the missing files, but no response was received. The court considered all arguments presented by both parties.

The court found that the petitioner was indeed entitled to the refund amount of Rs. 37,87,166 for the mentioned assessment years. The affidavit filed by the respondent No. 2 did not dispute this figure and confirmed that the matter had been processed and forwarded for approval. As a result, the court disposed of the writ petition with a direction to the respondents, particularly respondent No. 2, to ensure payment of the refund amount within four months from the date of the order. Additionally, the court directed the payment of statutory interest in accordance with Section 32 of the Assam General Sales Tax Act, 1993, to be paid within the same period. The interest was to be calculated on the directed amount, providing relief to the petitioner in terms of both the refund and the statutory interest.