Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1221 - HC - VAT and Sales TaxInterest on refund - Whether on the refund amount of predeposit, which the petitioner deposited while preferring the appeal before the learend Tribunal, when the petitioner has succeded before the learned Tribunal and the demand of tax is set aside and consequently the amount of predeposit is refunded, the petitioner-dealer is entitled to interest on such refund of predeposit as mandatory under Setion 54(1)(aa) of the Act? Held that: - Considering subsection (4) of Section 65 of the Act, whatever the amount is deposited would be towards payment of the tax / part payment of the tax, may be as a condition precedent for availing right of appeal. In a given case, if the appeal against the assessment order is dismissed and the tax liability / demand of tax is confirmed, in that case, whatever amount deposited at the time of preferring the appeal may be by way of predeposit is required to be given credit and the balance amount of tax liability is required to be thereafter deposited with the interest as provided under the Act. On conjoint reading of the subsection( 4) of Section 65 and Section 54, on the appeal being allowed and th tax liability is either reduced or set aside by the appellate authority in that case, concerned person shall be entitled to get back the said amount / refund the said amount with interest on completion of 90 days from the date of order passed by the Appellate Authority / Tribunal. Any other contrary view shall deprive interest of the concerned person. However, consdiering Section 54 the period of 90 days shall be calculated from the date of reciept of such order by the Sales Tax Officer (order passed by the Appellate Authority / Tribunal). The petitioners shall be entitled to interest at the rate of 9% p.a on the amount deposited by them as predeposit while preferring the appeal against the assessment order - petition allowed - decided in favor of petitioner.
|