9911796707
TMI Blog2012 (2) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Maharashtra Value Added Tax Act 2002. The Petitioner has stated that it is entitled to the benefit of the Package Scheme of Incentives, 1993 framed by the State Government, in respect of its unit at Ranjangaon in the Taluka of Shirur. On 21 July 1998 an eligibility certificate was issued to the Petitioner under which it is entitled to claim a refund of the amount of VAT / tax paid on the inputs / purchases for the period 1 March 1998 to 31 March 2012 under the MVAT Act 2002 subject to a cap of Rs.317 Crores. 3. Section 51(1) lays down the principles for the grant of refund to registered dealers. On 23 August 2007 the Second Respondent issued a trade circular to effectuate the provisions of Section 51. The circular was modified t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with Section 50, the Commissioner shall, on an application made by the dealer and subject to rules and the other provisions of the Act, grant refund of such amount to the dealer. The proviso to subsection (1) empowers the Commissioner subject to conditions and restrictions as may be prescribed to reduce the refund and grant only a part of the refund claimed in the application. Modalities are prescribed for the grant of refund in subsections (2) and (3). Subsection (2) deals with the first category of registered dealers who are required to apply for a refund after the end of the year to which the return, fresh return or revised return relates. The Commissioner is empowered to call for additional information within one month from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dealers, a special provision has been made in subsection (3) governing a class of registered dealers who fall within the ambit of that provision. While in the case of a registered dealer under subsection (2), the application for refund has to be filed after the end of the year, such a restriction has not been imposed under subsection (3) in respect of those categories of dealers who fall within the ambit of that provision. Subsection (5) of Section 51 is of relevance to this case and provides as follows : "(5) Notwithstanding anything contained in this section, if the dealer has furnished a bank guarantee for such amount, from such bank, for such period and to such authority as may be prescribed, the Commissioner shall grant the refund d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in regard to the terms of the guarantee or otherwise. Hence, it was urged that the Revenue should be directed to forthwith process the applications for refund and to grant and pay to the Petitioner refund together with interest under Section 53 of the Act. On the other hand, counsel appearing for the Revenue submitted that under Rule 60 it has been stipulated that when the Commissioner is satisfied that the refund is due, he shall pass an order showing an amount as refund due and shall communicate the same to the dealer. Learned counsel submitted that subsection (1) of Section 51 is subject to the rules which are framed and therefore, the Commissioner is duty bound to verify as to whether and to what extent a refund is due. Reliance has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtreme proposition that the Commissioner is precluded from carrying out a due verification. PNP 7 WP11168-9.2.sxw Refunds relate to the public revenues. The Commissioner as the custodian of the public revenue is duty bound to ensure that the provisions of Section 51 are not being misused and that a refund is due. Such an exercise is not prohibited by the statute. However, refund applications cannot be kept pending indefinitely. The basic purpose of Section 51 is to streamline the grant of refunds to registered dealers and particularly in the case of those falling in the special category carved out in subsection (3). Having regard to these provisions, we are of the view that there would be no justification for the sales tax department to kee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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