The Calcutta High Court, while allowing a writ petition, has directed the VAT department to grant refund along with interest as the department was withholding partial refund in the light of existing CST dues.
The petitioner, Alkem Laboratories Limited & Anr was aggrieved by the inaction on the part of the respondents Authority concerned in refunding the admitted refundable amount of approx. Rs.5,58,54,103.61.
The Petitioner conetnded that 50% of the aforesaid refundable amount has already been paid to it and the balance amount has been unjustifiably retained.
The department, on the other hand, contended that the reason for the withholding of refund was because of the existing dues in respect of the petitioner relating to the period in question, prepared by the Deputy Commissioner, Commercial Taxes, Large Taxpayers’ Unit, dated 3rd January, 2023.
Justice Md. Nizamuddin, after examining the documents, held that “On perusal of the aforesaid report it appears that there is no assessed dues against the petitioner relating to the relevant period and whatever due was there relating to the financial year 2015-2016, it has been adjusted against the excess payment refunded for the period 2013-2014.”
Allowing the writ petition, the Court held that “Considering the submission of the parties and the aforesaid report of the authority and the admission made by the respondents in pages 4 and 5 of their affidavit-in-opposition, this writ petition being WPA 19520 of 2018 is disposed of by directing the respondent authority concerned to refund the balance amount admitted in its affidavit-in-opposition with statutory interest of 12% p.a. from the date the aforesaid refund become due till the date of payment, within a period of one month from the date of communication of this order. In default, the amount refundable and interest will carry compound interest.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
