2019 (5) TMI 1478 - HC - VAT and Sales Tax

Court orders VAT Commissioner to pay Rs. 27,60,56,095 refund by 27th May. Non-compliance may lead to Court appearance.

The Court directs the Commissioner (VAT) to ensure payment of the refund amount of Rs. 27,60,56,095 to the Petitioner by 27th May, 2019, due to delays ... Issuance of Refund Orders - Respondents informs the Court that the refund orders cannot be issued because the concerned VATO is on ‘election duty’ - HELD THAT:- The Court is constrained to direct that the Commissioner (VAT) will himself issue the necessary orders to ensure that the refund amount is paid to the Petitioner on or before 27th May, 2019. The Court will not accept the excuse that either the VATO or the Joint Commissioner is on ‘election duty’, or even that the matter had to be placed before the Refund Approval Committee for that purpose. If the Commissioner (VAT) does not comply with this order, he will remain personally present in Court on the next date of hearing. List on 29th May, 2019. Issues:Refund orders delay due to officers on election duty causing financial burden on taxpayer.Analysis:The judgment addresses the issue of delay in issuing refund orders due to officers being on election duty. The concerned VATO and even the Joint Commissioner are reported to be on election duty, leading to a significant backlog in processing refund applications. The Court expresses concern over the paralysis of the department's functioning and the mounting refund amount of Rs. 33,96,32,192 claimed by the Petitioner. The Court notes that interest payable on the refund amount has already reached Rs. 6,35,76,097. The Petitioner highlights that further delays would increase the interest burden by Rs. 45,380 per day until payment, emphasizing the unfair burden on taxpayers due to the inefficiency of the department in managing officer requisitions for election duty.The Court, in response to the situation, directs the Commissioner (VAT) to ensure the refund amount of Rs. 27,60,56,095 is paid to the Petitioner by 27th May, 2019. The Court rejects excuses related to officers being on election duty or the need for referral to the Refund Approval Committee for payment processing. It warns that failure to comply with the order will result in the Commissioner (VAT) having to personally appear in Court on the next hearing date. The case is listed for further proceedings on 29th May, 2019, with instructions for the issuance of necessary documents under the Court Master's signature for expedited action.