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2016 (2) TMI 612 - HC - VAT and Sales TaxClaim of interest of on Refund of sales tax / vat which was paid under protest - earlier Apex court clarified that if lease is executed in one State but the goods are situated in another State, no local tax was payable in the state - Held that:- Such refund was actually paid to the petitioners alongwith partial interest. When the petitioners demanded interest for the full period, the authority conveyed to the petitioners that by virtue of the judgement of Supreme Court in case of Mafatlal Industries on the basis of principles of unjust enrichment, the petitioners were not entitled to any refund in the first place. Question of paying interest, therefore, would not arise. For multiple reasons, such approach was wholly erroneous. Firstly, whether the principles of unjust enrichment, as expounded by the Supreme Court in case of Mafatlal Industries would apply at all is a question. More importantly, such question could not have been considered by the authority without any opportunity to the petitioner. Even more importantly, the claim of interest is statutorily recognized under Section 54 of the Sales Tax Act and flows from the petitioners' right to seek refund. The authority who himself granted such refund, now questions the legality and validity of his own order. He did not have any power of review. The revision authority has not yet taken his order in revision. The Assistant Commissioner of Commercial Tax, therefore, had no authority to question his own order of granting refund. The Competent authority shall compute the interest payable to the petitioners for the entire period between the deposit of the tax till actual payment and pay to the petitioners such interest at the statutory rate after adjusting the interest already computed and paid over while granting refund. - Decided in favor of assessee.
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