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2019 (2) TMI 2060 - GUJARAT HIGH COURTDoctrine of merger - Seeking a direction to the respondents to pay interest at the rate of 9% per annum from August, 2006 till the date of its actual refund on the principal amount - HELD THAT:- It is not in dispute that the controversy involved in the present case is no longer res integra, inasmuch as the same stands decided by the above referred decision of this court in the case of M/s Syngenta Crop Protection Pvt. Ltd. v. State of Gujarat [2018 (4) TMI 1669 - GUJARAT HIGH COURT]. In the said case this court, relied upon an earlier decision of this court in the case of State of Gujarat v. Doshi Printing Press [2015 (3) TMI 211 - GUJARAT HIGH COURT] wherein the court turned down the contention that while giving effect to section 54(1)(aa) of the Act, the effect would be available to the assessment made by the assessing authority only and not the further modification made by the first appellate authority or thereafter, the second appellate authority or even third appellate authority, as the case may be. The court held that the interpretation canvassed by the revenue of section 54(1) (aa) of the Act, if accepted, would run counter to the basic principles of the doctrine of merger which is a well accepted doctrine incorporated in the system of administration of justice. The refund claim of the assessee, therefore, cannot be stated to have arisen from an order other than the order of assessment. The court further held that 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Act was brought in force and that the petitioner cannot seek interest on the refund at the rate prescribed under the repealed Gujarat Sales Tax Act merely because the amount involved was in relation to a period when the Gujarat Sales Tax Act was in force. To that extent, the petitioner’s contention was negatived. The respondents are directed to forthwith pay interest to the petitioner at the rate of 6% per annum from August, 2006 till the date of actual refund on the principal amount of Rs.1,28,63,365/-, and not later than four weeks from the date of receipt of a copy of this judgment - Petition allowed.
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