9911796707
TMI Blog2024 (5) TMIX X X X Extracts X X X X X X X X Extracts X X X X ..... de the payment of tax of Rs. 4,91,096/- and penalty of Rs. 50,000/- imposed under Section 86(14). Therefore, interest on such amount shall be payable from 10.05.2023 at the rate of 6% till the date of refund. The GSTO has rightly computed the interest vide its order dated 31.07.2023, and therefore, the writ petition is devoid of any merits - Petition dismissed. - HON'BLE MR. JUSTICE SANJEEV SACHDEVA AND HON'BLE MR. JUSTICE RAVINDER DUDEJA For the Petitioner Through: Mr. Rajesh Mahna, Mr. Ramanand Roy, Mr. Mayank Kouts and Mr. Shiva Narang, Advocates For the Respondents Through: Mr. Rajeev Aggarwal, ASC with Mr. Prateek Badhwar, Ms. Shaguftha H. Badhwar and Ms. Samridhi Vats, Advocates JUDGMENT RAVINDER DUDEJA, J. 1. The Petitioner has preferred this petition seeking the following reliefs:- i) issue a writ of certiorari or any other writ, order or direction in the nature thereof, thereby quashing impugned order dated 31.07.2023, where in interest has been provided from the date of decision of Tribunal upto date of passing order of sanctioning refund; ii) issue a writ of mandamus or any other writ, order or direction in the nature thereof, thereby directing the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .07.2023, rejecting the contentions of the petitioner of higher rate of interest than that mentioned in the Delhi Value Added Tax [ DVAT ] Act as also grant of interest from the date of deposit. The interest on the penalty imposed under Section 86 (19) of Rs. 4,91,096/- was calculated from 26.08.2021 i.e. the date of order by which the said penalty was set aside by the learned Tribunal, while the interest on the tax and penalty under Section 86 (14) was calculated from 10.05.2023. Submissions:- 10. Learned counsel for petitioner has submitted that Delhi Value Added Tax Act Appellate Tribunal [ DVAT Tribunal ] vide its order dated 10.05.2023 has concluded that petitioner is not a dealer in terms of provisions of DVAT Act, 2004 and accordingly the provisions of DVAT Act are not applicable in the present case. That being so, the sum of Rs. 10,32,138/- deposited by the petitioners with the respondents was neither a tax nor a penalty for violation of any provision of DVAT Act. Such amount was illegally retained by the respondents for over a period of 17 years without authority of law, and therefore, respondents are bound to compensate petitioner by way of interest at the market rate. 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such amount and it must be refunded with interest, however, the interest was ordered to be refundable from the date after three months of passing of order by Commissioner till the amount is actually paid. Learned Standing Counsel has thus submitted that writ petition is devoid of any merits and is liable to be dismissed. ANALYSIS CONCLUSION 14. Admittedly, this is third round of litigation before this Court. In the first round, vide W.P. (C) 11463/2023, directions were sought for refund of amount of Rs. 10,32,138/- along with interest and compensation thereof. The said petition was allowed with directions to the competent authority of the respondents to dispose of the prayer for refund within a period of four weeks. It was also directed that competent authority shall consider the contention of the petitioner that it is entitled to interest on the refund at the rate as claimed and notwithstanding the prescription contained in the Act. The Court also issued directions to the competent authority that the prayer as made shall be disposed of by way of a speaking order. 15. The competent authority passed an order of refund but restricted the interest to the rates prescribed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent to attend to and dispose of the prayer for refund within a period of four weeks from today. While doing so, the competent authority shall also consider the contention of the petitioner that it is entitled to interest on the refund at the rate as claimed and notwithstanding the prescription contained in the Act. The prayers as made shall be disposed of by way of a speaking order. 8. Subject to the aforesaid observations, this petition shall stand disposed of on the above terms. The Court reserves the right of the petitioner to assail the order passed by the competent authority, if it be adverse, in accordance with law. 5. Although it is alleged by the petitioner that the impugned order has been backdated, we do not propose to go into that question since Mr. Aggarwal has fairly submitted that in light of the observations as carried in the order of the Court dated 03 July 2023, the order impugned insofar as it restricts interest on delayed disbursal to rates prescribed under the DVAT Act would have to be necessarily recalled. He, accordingly, submits that the authority shall in consequence to the above be apprised of the obligation to decide the question of interest on delayed d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was set aside, petitioner would still continue to be governed by the provisions of DVAT Act for the purpose of grant of interest. 19. Sections 38 and 42 of the DVAT Act deal with the grant of refund and Interest. It would be apposite to extract the relevant provisions i.e. Sections 38 (1) and 42 (1) (a) and (b) of the DVAT Act:- 38. Refunds (Rules 22 (4) 34) (1) Subject to the other provisions of this section and the rules, the Commissioner shall refund to a person the amount of tax, penalty and interest, if any, paid by such person in excess of the amount due from him. 42 Interest (Rule 34 (6) 36) (1) A person entitled to a refund under this Act, shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the Government from time to time, computed on a daily basis from the later of (a) the date that the refund was due to be paid to the person; or (b) the date that the overpaid amount was paid by the person, until the date on which the refund is given. PROVIDED that the interest shall be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Act, or under the Central Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
