9911796707
TMI Blog2010 (4) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the appeals, the appellate authority, however, directed assessment on the turnover relating to herbal shikakai powder as assessable at 11 per cent. Consequent on the appellate order refixing the rate of tax as 11 per cent, in respect of the assessment years 1997-98, 1998-99 and 1999-2000, the assessing authority passed consequential orders under section 39A of the Tamil Nadu General Sales Tax Act, 1959 on June 28, 2000 for the assessment year 1997-98 and in respect of 1998-99 and 1999-2000, the order was passed on July 2, 2002. It is stated that the Revenue filed appeals before the Sales Tax Appellate Tribunal and the same was dismissed. Consequent on the rectification order passed on the application of the petitioner by the Tribunal, the petitioner claimed refund of the excess tax paid for the abovesaid years. In respect of all these years, the respondent received copies of the appellate orders on May 28, 2000 in respect of the assessment year 1997-98 and on September 14, 2001, for the assessment years 1998-99 and 1999-2000. It is seen that the petitioner approached the Tamil Nadu Taxation Special Tribunal in O.P. Nos. 911 to 913 of 2002 seeking direction to the Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tamil Nadu General Sales Tax Act, 1959. The learned counsel submitted that when the refund voucher had not been issued immediately on the passing of the order under section 39A of the Tamil Nadu General Sales Tax Act, when the refund voucher was issued only on February 5, 2003, the petitioner is entitled to be compensated by way of interest. Referring to section 24(4) of the Tamil Nadu General Sales Tax Act, he submitted that the petitioner cannot be denied of the statutory interest and the delay on the part of the respondents could not stand in the way of interest being paid to the petitioner, as provided under section 24(4) of the Tamil Nadu General Sales Tax Act, 1959. As already pointed out, on the admitted facts as regards the assessment year 1997-98, the giving effect order for the assessment year 1997-98 under section 39A of the Tamil Nadu General Sales Tax Act was made on June 28, 2000; and for the assessment years 1998-99 and 1999-2000, on July 2, 2002. As far as the first assessment year is concerned, the respondent received the order copy on May 23, 2000 and for the second assessment year, the order of the appellate authority was received on September 24, 2001. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee months from the date of communication of the order, the assessing authority shall serve a notice in form C to the assessee, notifying the dealer as to the adjustment of the excess tax towards arrears, if any, or in the absence of arrears, to refund the amount along with a notice, by sending a voucher to the dealer for claiming refund of the amount without interest from the treasury. Rule 33(2)(e) of the Tamil Nadu General Sales Tax Rules states that if a refund is made within a period of 90 days from the date of receipt of the revisional authority's order, the Department is not bound to grant any interest under the provisions of the Act, which means, any refund voucher issued beyond the period of 90 days would certainly carry interest under section 24(4) of the Tamil Nadu General Sales Tax Act. Reading all these provisions together, it stands to reason that even though section 39A of the Tamil Nadu General Sales Tax Act does not provide for a period for passing of an order, yet, a combined reading of rule 32(2) of the Tamil Nadu General Sales Tax Rules as well as section 24(4) of the Tamil Nadu General Sales Tax Act, which contemplates payment without interest if mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 5, 2003, I have no hesitation in allowing the writ petition for the year 1997-98 that on the expiry of the 90 days' time-limit, the petitioner is entitled to have the interest paid from the 91st day from the date of receipt of the appellate order. As far as the assessment years 1998-99 and 1999-2000 are concerned, even though the appellate authority's order was received on September 14, 2001, yet for reasons best known, the giving effect order under section 39A was made only on February 3, 2003, which means that the same was made beyond the 90 days' period contrary to rule 32(2) of the Tamil Nadu General Sales Tax Rules and section 24(4) of the Tamil Nadu General Sales Tax Act and hence, going by the 90 days' limitation provided for under section 24(4) of the Tamil Nadu General Sales Tax Act, if an order under section 39A of the Tamil Nadu General Sales Tax Act giving effect to the appellate order is not made within a period of 90 days, the assessee is entitled to have the interest paid as per section 24(4) of the Tamil Nadu General Sales Tax Act. The mere fact that section 39A has not provided for a time-limit does not mean that an order can be passed at any ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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