2019 (11) TMI 946 - HC - VAT and Sales Tax

Court directs payment of specified interest at 4% per annum; rejects claim for 12% interest.

The court found in favor of the petitioner, directing the respondents to pay the specified interest amount due as of December 14, 2017, along with ... Entitlement to interest on delayed refund - rate of interest for delayed payment - delay and laches - moulding of relief - computation of interest from due date till paymentEntitlement to interest on delayed refund - computation of interest from due date till payment - Respondents directed to pay the interest component that stood accrued up to 14th December, 2017. - HELD THAT: - The Court applied its earlier decision in Writ Petition No.424 of 2018 and held that the petitioner was entitled to the interest component calculated up to 14th December, 2017. In view of the prior determination, the respondents were directed to pay the interest amount that had become due as on that date, and to undertake the necessary computation. The Court observed that the petitioner had pursued representations claiming refund and interest prior to institution of the petition, and that recovery did not require initiation of proceedings before the Court to establish entitlement. [Paras 4]Respondents shall pay the interest amount which was payable to the petitioner as on 14th December, 2017.Rate of interest for delayed payment - moulding of relief - Rate of interest payable from 14th December, 2017 until actual payment fixed at 4% per annum. - HELD THAT: - The petitioner sought interest at 12% per annum for the period from 14th December, 2017 until payment, while the respondents relied on the existence of a bona fide dispute and reserved their right to challenge the earlier judgment. The Court considered the contentions and the factual backdrop including representations made by the petitioner and the pendency of statutory interpretation questions. Balancing these factors, the Court declined to award the claimed 12% and also declined to insist on the statutory 8% rate, instead exercising judicial discretion to mould relief by awarding a concessional rate of 4% per annum to be computed from 14th December, 2017 until payment, with directions for necessary computation and payment within eight weeks. [Paras 5, 6, 8, 9]Interest from 14th December, 2017 until payment to be paid at 4% per annum, with computation and payment within eight weeks.Delay and laches - moulding of relief - Petition not dismissed on ground of delay or laches; delay may be considered in moulding relief but did not bar petitioner from relief in this case. - HELD THAT: - The respondents contended that the petition was barred by delay and laches. The Court found that, given the petitioner's prior correspondence and representations seeking interest and refund, it would not non-suit the petitioner for delay. The Court further noted that while delay and laches could be considered when moulding relief, on the facts and having regard to the representations and the resolution of the legal dispute by the prior judgment, the petitioner could not be denied at least some interest. Accordingly, delay was not a bar to granting relief, although it remained a relevant factor in determining the rate of interest. [Paras 3, 7]Delay and laches do not bar the petition; they were to be factored into moulding appropriate relief, which resulted in the award of interest at 4% per annum.Final Conclusion: The petition is disposed of by directing payment of the interest amount due as on 14th December, 2017 together with interest thereon at 4% per annum from 14th December, 2017 until actual payment, with computation to be made and payment to be effected within eight weeks; no order as to costs. Issues Involved:1. Delay and laches in the petition.2. Entitlement of interest from 2014 to 2017.3. Interpretation of provisions of Goa Value Added Tax Act, 2005.4. Claim for interest at the rate of 12% per annum.5. Claim for interest at the rate of 8% per annum.6. Determination of appropriate interest rate.Analysis:1. Delay and Laches in the Petition:The court acknowledged the argument raised by the Advocate General regarding the delay and laches in the petition. However, the court found that the claim mainly pertained to interest between 2014 to 2017, supported by correspondence between the petitioner and the respondents. The court deemed it inappropriate to non-suit the petitioner on the grounds of delay or laches. The court clarified that the aspect of delay could be considered during the final hearing for relief.2. Entitlement of Interest from 2014 to 2017:The court referred to a previous judgment and order which directed the respondents to pay the petitioner a specific amount as interest up to December 14, 2017. The court upheld this direction and ordered the respondents to pay the specified amount to the petitioner.3. Interpretation of Provisions of Goa Value Added Tax Act, 2005:The Advocate General highlighted a dispute regarding the interpretation of provisions of the Goa Value Added Tax Act, 2005. The court noted that the dispute was resolved in a previous judgment and order dated October 16, 2019. The Advocate General reserved the right for the State to challenge this judgment, but the court did not find this as a basis to deny further interest to the petitioner.4. Claim for Interest at the Rate of 12% per Annum:The petitioner requested further interest at the rate of 12% per annum from December 14, 2017, until the actual payment of the interest amount. However, the court did not accept this claim and determined that an interest rate of 4% per annum would be appropriate in the present circumstances.5. Claim for Interest at the Rate of 8% per Annum:The petitioner could not insist on interest at the statutory prescribed rate of 8% per annum as per the Act. The court considered various factors and circumstances and decided that an interest rate of 4% per annum would be more suitable for the current case.In conclusion, the court directed the respondents to pay the petitioner the specified interest amount due as of December 14, 2017, along with interest at the rate of 4% per annum from that date until the actual payment, to be made within eight weeks from the date of the judgment. The petition was disposed of accordingly, with no order as to costs.