Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1306 - MADRAS HIGH COURTRectification application - refund claim - The petitioner seeks for a direction upon the respondent to modify the orders of refund dated 23.11.2015 and the orders of rejecting the applications filed by the petitioner for rectification dated 25.11.2016 and consequently to sanction refund of the value of 'Capital Goods' in terms of Section 18(1) of the TNVAT Act and the refund pertaining to wastage - time limitation - Held that: - It is no doubt true that the petitioner did not immediately file the applications but preferred the applications after about a period of 10 months. Be that as it may. The respondent was bound to consider the said applications, since the TNVAT Act does not prescribe an outer time limit for filing applications under Section 84 of the Act - the reason assigned by the respondent in the orders dated 25.11.2016 for rejecting the applications filed under Section 84 of the Act is incorrect. Admittedly, in the order dated 23.11.2015, while granting partial relief to the petitioner, the respondent disallowed the substantial portion of the refund claim. The order does not stated as to why such disallowance has been made. There is no explanation in the order dated 23.11.2015 as to how, the respondent adopted uniform percentage of wastage at 2%. When the respondent has not assigned reasons for disallowing part of refund claim while passing order dated 23.11.2015, it is sufficient to hold that the order suffers from error apparent on the face of the record and necessarily rectifiable under Section 84 of the Act. Therefore, the respondent was bound to exercise the power in a judicious manner and consider the case of the petitioner, as putforth by them, in their applications filed under Section 84 of the Act dated 28.10.2016. The orders passed by the respondent dated 25.11.2016 and the orders of refund dated 23.11.2015 in so far as it disallow the part of the refund claim under the heads Wastage as per Section 19(9) of the Act at 2 % and Less Capital Goods are set aside and the matter is remanded to the respondent for fresh consideration - petition allowed by way of remand.
|