Court orders refund of excess tax due to double deductions, directs interest payment.

The court granted the petitioner's writ for the refund of excess tax amounts for the assessment years 2006-2007 and 2007-2008 due to double deductions of TDS. The court directed the authorities to refund the excess amounts totaling Rs.1,29,32,903/- and pay interest on the refunded amount of Rs.1,04,76,208/-. Additionally, the court instructed the respondents not to insist on TDS deductions for future payments and to decide promptly on refund applications.

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Issues:
1. Refund of excess tax amount for assessment years 2006-2007 and 2007-2008.
2. Insistence on TDS deduction by respondents.
3. Quashing of letter insisting on TDS deduction.
4. Decision on refund application.
5. Payment of interest on the refunded amount.

Issue 1: Refund of excess tax amount
The petitioner sought a writ for the refund of Rs.1,29,32,903/- found to be deposited in excess for the assessment years 2006-2007 and 2007-2008. The counter affidavit admitted the refundable amounts of Rs.46,76,493/- and Rs.98,29,773/- for the respective years due to double deductions of TDS. The Deputy Commissioner had instructed NHAI to make deductions as per Section 34(1), leading to the excess amounts being refundable.

Issue 2: Insistence on TDS deduction
The petitioner requested a writ to direct respondents not to insist on TDS deduction for future payments based on an order under the U.P. VAT Act. The respondents had insisted on TDS deductions, leading to a dispute over the correct deduction amounts.

Issue 3: Quashing of letter insisting on TDS deduction
A writ of certiorari was sought to quash a letter from the Deputy Commissioner, Commercial Taxes, Jhansi, insisting on TDS deduction contrary to an order passed under Section 34(5) of the U.P. VAT Act. The petitioner argued against the incorrect insistence on TDS deductions by the authorities.

Issue 4: Decision on refund application
The petitioner requested a writ directing the Deputy Commissioner, Commercial Taxes, Noida, to decide on the refund application dated 11.08.2011. The delay in deciding the refund application was a point of contention in the case.

Issue 5: Payment of interest on the refunded amount
The petitioner argued for the payment of interest on the refunded amount of Rs.1,04,76,208/-. The petitioner relied on legal provisions and a Division Bench judgment to support the claim for interest on the refunded amount. The court found that interest was payable on the refunded amount without the need for a separate demand for it. The judgment directed the respondents to calculate and pay the interest to the petitioner within 60 days.

In conclusion, the court disposed of the writ petition with directions for the payment of interest on the refunded amount, emphasizing that interest is payable on the amount found refundable and actually refunded by the department.

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