Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2018 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1669 - GUJARAT HIGH COURTAttachment of Bank accounts - Section 54 of the Gujarat Sales Tax Act - interest of delayed refund - Held that:- Division Bench in case of Doshi Printing Press [2015 (3) TMI 211 - GUJARAT HIGH COURT] has also in the latter portion of the decision discussed the compensatory nature of interest to be paid and the Department is in appeal before the Supreme Court. However, as far as first portion of the judgment; reproduced hereinabove, we have no hesitation in respectful concurrence. When the statutory appellate authority allows the appeal of an assessee, it only corrects the order of assessment. In other words, he gives legal shape to the contours of the matter, which in any case the Assessing Officer should have adopted. In terms of Section 54 [1] of the Gujarat Sales Tax Act, therefore, in such a situation, it cannot be stated that the refund claim of the assessee arises out of an order other than an order of assessment. There is a mandate for granting interest @ 6% per annum from the date of closure of the accounting year, or from the date of payment of the amount by the Dealer till the date of payment of amount of refund, if such refund becomes due and payable by virtue of an order of assessment. This section therefore also recognizes the right of a dealer to receive refund with interest at the prescribed rate from the date of payment or from the date of closure of accounting year; whichever is later, till the actual refund is made - Undoubtedly, therefore, the petitioner was required to be refunded the recovered amount, pursuant to the order of assessment from the date of its refund till the actual payment - whether applying Gujarat Sales Tax Act or Gujarat Value Added Tax Act provisions. With the repeal of the Gujarat Sales Tax Act, 1969 and its substitution by the Gujarat Value Added Tax Act, 2003 the petitioner would be covered by the provisions of the VAT Act concerning the assessment, recovery and refund of the tax; including the prescribed rate of interest for refund. The amounts were recovered from the petitioners only in the month of February 2010, that is long after the VAT Act was brought in force. The petitioner cannot seek interest on the refund at the rate prescribed under the repealed Gujarat Sales Tax Act merely because the amount involved was in relation to a period when the Gujarat Sales Tax Act was in force. The petitioner would be entitled to interest from the date amounts in question were recovered till the actual payment was made with simple interest @ 6% per annum. Deficient interest would be paid latest by 30th May 2018 - petition disposed off.
|