2010 (8) TMI 857 - HC - VAT and Sales Tax

Summary

Issues involved:
The judgment involves the quashing of an order passed by the Haryana Tax Tribunal regarding the refund of tax paid on raw materials used in manufacturing a product that was exported and did not attract tax under the Haryana Value Added Tax Act, 2003.

Details of the judgment:

The petitioner, a dealer under the Haryana Value Added Tax Act, 2003, sought a refund of tax paid on raw material "guar" used in manufacturing "guar gum", which was exported and not taxable under the Act. The petitioner's claim for refund was initially rejected but upheld by the appellate authority. However, the revisional authority later ruled against the refund, a decision upheld by the Tribunal. The Tribunal's finding emphasized the provisions of the Act regarding the computation of input-tax credit and the treatment of goods used in manufacturing taxable and non-taxable products.

The petitioner argued that the refund should follow the order of the appellate authority, with the only question in the refund proceedings being the quantification of the refund. Citing a judgment of the court in a similar case, the petitioner contended that the officer determining the refund amount cannot exercise powers of review, appeal, or revision, and must respect the order of assessment before proceeding to determine the refund amount. Based on these arguments, the court allowed the petition, setting aside the impugned order while clarifying that it does not affect the petitioner's liability in a pending appeal.