TMI Blog2019 (3) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, the effect would be available to the assessment made by the assessing authority only and not the further modification made by the first appellate authority or thereafter, the second appellate authority or even third appellate authority, as the case may be. The court held that the interpretation canvassed by the revenue of section 54(1) (aa) of the Act, if accepted, would run counter to the basic principles of the doctrine of merger which is a well accepted doctrine incorporated in the system of administration of justice. The Gujarat Value Added Tax Act, 2003 came into force with effect from 1st April, 2006. In the light of what is held in the above decision, considering the fact that in the present case the payment has been made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act ) for the financial year 2001-02. Against the said order, the petitioner went in appeal before the Deputy Commissioner of Sales Tax, Appeals-2 Baroda (hereinafter referred to as the appellate authority ), under section 65 of the Act. By an order dated 5.5.2003, the appellate authority held that the petitioner was entitled to receive a refund of ₹ 3,04,22,628/-. This order has attained finality as the same has not been challenged or revised by the State authorities. Thereafter, the petitioner sent repeated reminders to various assessing authorities. By the impugned order dated 15.9.2018, the second respondent Assistant Commissioner of Sales Tax granted refund of only the principal amount of ₹ 3,04,22,628/- without interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of this court in the case of State of Gujarat v. Doshi Printing Press , [2015]82 VST 384 (Guj.) ; against which, the State of Gujarat has approached the Supreme Court and that the matter is pending adjudication, and hence, the decision of this court has not attained finality. It was submitted that the present case would fall within the ambit of clause (b) of sub-section (1) of section 54 of the Act inasmuch as the refund claim arises out of an order of the appellate authority and not an order of assessment, and, therefore, the petitioner is not justified in claiming interest from the date of the order of assessment. 6. In the facts of the present case, the assessment order came to be passed on 31.12.2002, whereas the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory appellate authority allows the appeal of an assessee, it only corrects the order of assessment. In other words, he gives legal shape to the contours of the matter, which in any case the Assessing Officer should have adopted. Therefore, in terms of section 54(1) of the Gujarat Sales Tax Act, in such a situation, it cannot be stated that the refund claim of the assessee arises out of an order other than an order of assessment. The appellate authority while allowing the appeal merely corrected the assessment. It is such corrected assessment which would prevail. The refund claim of the assessee, therefore, cannot be stated to have arisen from an order other than the order of assessment. The court further held that the amounts were recov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of M/s Syngenta Crop Protection Pvt. Ltd. v. State of Gujarat (supra), this petition deserves to be allowed to the extent indicated hereinabove. 10. For the foregoing reasons, the petition succeeds and is, accordingly, allowed. The respondents are directed to forthwith pay interest to the petitioner on the principal amount of ₹ 3,04,22,628/- at the rate of 9% in terms of sub-section (1) of section 54 of the Gujarat Sales Tax Act, 1969 till 31st March, 2006 and for the remaining period till the refund was made at the rate of 6% per annum, and not later than four weeks from the date of receipt of a copy of this judgment. Rule is made absolute accordingly, with no order as to costs. - - TaxTMI - TMITax - CST, VAT & Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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