2017 (6) TMI 461 - HC - VAT and Sales Tax

Court Orders Refund and 'C' Forms Compliance, Grants Remedies for Non-Compliance

The Court directed the Respondent to issue refund orders for various tax periods within specified timelines, ensuring direct deposit of the refund amounts ... Refund claim - C-Forms - Held that: - refund allowed, subject to production of C-Forms. As regards the interest for the period during which the ‘C’ Form was not furnished, learned counsel for the Department states that the amount will be paid immediately subject to the outcome of the decision of the Supreme Court in the case of Vizien Organics v. Commissioner, Trade & Taxes [2017 (1) TMI 1168 - DELHI HIGH COURT]. Petition allowed - decided in favor of petitioner. Issues:1. Refund claim for four tax periods.2. Refund order issuance timeline and direct deposit.3. Requirement of 'C' Form for the period from 1st September, 2012 to 30th September, 2012.4. Direction for VATO regarding 'C' Form submission.5. Refund order issuance for the period from 1st January, 2013 to 31st March, 2013.6. Payment of interest for the period of non-furnished 'C' Form.7. Compliance and remedies available to the Petitioner.Analysis:1. The Petitioner filed a refund claim for four tax periods. The Respondent assured the Court that refund orders for two periods would be issued within four weeks. The Court directed the issuance of refund orders not later than two weeks, with direct deposit of the refund amount and interest within one week thereafter.2. For the period from 1st September, 2012 to 30th September, 2012, the Petitioner was required to furnish the 'C' Form. The Respondent claimed the 'C' Forms were already submitted, and if required, the VATO would request photocopies within one week. The Court directed the refund order issuance within four weeks and direct deposit of the refund amount with interest within one week thereafter.3. Regarding the period from 1st January, 2013 to 31st March, 2013, the Petitioner agreed to produce the 'C' Form within one week. The Court directed the refund order issuance within four weeks and direct deposit of the refund amount with interest within one week thereafter.4. The Department agreed to pay interest immediately for the period when the 'C' Form was not furnished, subject to the Supreme Court's decision in a specific case. The Petitioner was granted the right to seek appropriate remedies in case of non-compliance with the Court's directions.5. The petition was disposed of accordingly, with an order for Dasti under the Court Master's signature.