Tax Refund Dispute Resolved: Petitioner Wins Challenge Against Unjustified Denial, Ordered Immediate Refund of Rs. 8,80,992

HC allowed the writ petition challenging tax refund denial. State Tax Officer's order was quashed, directing immediate refund of Rs. 8,80,992 within two weeks. Court found State's delay in filing appeal unjustified and emphasized petitioner's right to recover the disputed amount, with liberty for State to challenge in future proceedings if warranted.

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Issues involved:
The issues involved in the judgment are the refusal of refund by the State Tax Officer pending an appeal, delay in filing the appeal by the State, and the petitioner's right to receive the refund.

Refusal of Refund Pending Appeal:
The writ petition was filed under Article 226/227 of the Constitution of India to quash the order dated 28.04.2023, where the State Tax Officer declined the refund of Rs. 8,80,992 on the grounds of an appeal being filed against the previous order. The Deputy Commissioner of State Tax had earlier allowed the appeal against the order that imposed a tax penalty and fine. Despite no appeal being filed against this decision for over a year, the State had not refunded the amount, leading to the accusation of delaying tactics by the State.

Delay in Filing Appeal:
The State had been given multiple opportunities to confirm whether an appeal had been filed or not, but as of the latest hearing, the appeal had still not been filed. The court observed that the State's delay in filing the appeal was unjustified, especially considering that over a year had passed since the original order was issued. The court concluded that the State was merely prolonging the issue without valid reasons.

Petitioner's Right to Refund:
In light of the State's delay and lack of justification for withholding the refund, the court quashed the order declining the refund and directed the State to refund the amount due within two weeks. The court emphasized that this direction did not prevent the State from recovering the amount in case a future order favored the State. The writ petition was allowed in favor of the petitioner, ensuring the rightful refund of the disputed amount.

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