Court Orders Revenue Counsel to Facilitate Refund Mechanism

The court directed the Revenue Counsel to facilitate the refund mechanism between government institutions. The counsel for Revenue assured that if FCI applied for a refund and proved the burden was not passed on, the claim would be decided within two months. FCI/HAFED committed to pay the lease money to the petitioner before the next hearing, with no entitlement to interest on the due amounts. Eventually, the refund amount was confirmed to be handed over to FCI Hisar, and the petitioner acknowledged receiving the due amount from HAFED through FCI. The writ petition was disposed of as infructuous due to the resolution achieved through court intervention, indicating no further adjudication was necessary.

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Issues:
1. Claim for refund of wrongly paid Service Tax.
2. Payment of lease money to the petitioner.
3. Resolution of the matter through court intervention.

Analysis:
1. The judgment involved two writ petitions with similar parties, issues, and relief claimed. The petitioner, a partnership firm, owned a Godown rented to HAFED for storing foodgrains. HAFED deducted Service Tax while tendering rent, which was later found exempt for agricultural use. The petitioner deposited the tax and sought a refund, which was denied due to limitation. During the hearing, it was established that the wrongly paid Service Tax could only be refunded to FCI if the burden was not passed on to consumers. The court directed the Revenue Counsel to facilitate the refund mechanism between government institutions.

2. The counsel for Revenue assured that if FCI applied for a refund and proved the burden was not passed on, the claim would be decided within two months. Regarding the payment of lease money to the petitioner, FCI/HAFED committed to pay before the next hearing. The court clarified that no party would be entitled to interest on the due amounts. Eventually, the Revenue Counsel presented a letter confirming the refund amount handed over to FCI Hisar. The petitioner's counsel acknowledged receiving the due amount from HAFED through FCI.

3. Based on the updates provided during the hearings, all parties agreed that the writ petition had become infructuous due to the resolution achieved through court intervention. Consequently, the petition was disposed of as infructuous, indicating that the matter no longer required further adjudication.

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