2024 (5) TMI 716 - HC - GST

Assessing Authority Ordered to Process 2011-12 Refund with Interest; Court Suggests Appellate Remedy for Petitioner.

The HC directed the assessing authority to address the refund request for the 2011-12 assessment year within two months, including interest under Section ... Re-Determination of refund and interest thereon - Subsequent to the direction of the High Court, revised assessment order was passed, refund and interest amount was re-determined - Cancellation of assessment order - Refund claim alongwith interest - HELD THAT:- As the petitioner did not produce the documents and not filed reply to the notice, an ex-parte order of the assessment for the year 2012-2013 was passed, in which it was held that an amount of Rs. 19,47,790/- was found due after adjusting the refund amount of Rs. 23,52,998/- for the year 2011-2012. Since the amount to be refunded for the year 2011-2012 with interest was given credit for the year 2012-2013, the direction of the High Court in its judgment N.R. PATEL AND COMPANY VERSUS ASSISTANT COMMISSIONER OF WORKS CONTRACT COMMERCIAL TAXES, STATE OF KERALA, THIRUVANANTHAPURAM [2015 (3) TMI 1436 - KERALA HIGH COURT] was complied with in respect of the assessment year 2011-2012. Later on, it was found that some mistake in calculating the interest on refund had occurred for the assessment year 2011-12 and therefore, the order for the assessment year 2012-13 was rectified by which an amount of Rs. 21,51,887/- was given credit and balance amount of Rs. 22,18,689/- was found due for the year 2012-13 as per the rectified order dated 16.10.2015. The appellate authority has modified the assessment order vide order dated 20.06.2022 for the Assessment year 2011-12 by Ext. P-15 and P-16 separate orders. Subsequently, the refund has been ordered as Ext. P-17 granting an amount of Rs. 90,29,252/-. On further verification, it came to light that there was some error in the calculation of the interest portion. Hence, Ext. P-18 notice was issued under Section 56 on 29.07.2023. After hearing the petitioner, a fresh order on Ext. P-20 was issued on 21.01.2023 directing the assessing authority to re-work the interest applicable as per the Statute. Subsequently, after issuing Ext. P-21 notice and considering the aforesaid reply filed by the petitioner in Ext. P-23 order dated 04.09.2023 was issued and an order of refund was limited to Rs. 49,96,500/-. If the petitioner is aggrieved by the said order, the remedy lies elsewhere under the Statute itself. This Court cannot enter into the factual dispute as it is for the petitioner to approach the Appellate Authority against the said order if he is not satisfied with the order passed for refund in the impugned order. This court is not an appellate authority under the provisions of the KGST Act to examine the merit of the assessment/refund order. There are no substance in this writ petition which is hereby dismissed. Issues involved:1. Refund of excess amount paid under Kerala Value Added Tax Act, 2003 for assessment year 2011-2012.2. Assessment and non-compliance for the assessment year 2012-2013.3. Rectification of assessment orders for years 2011-2012 and 2012-2013.4. Cancellation and rectification of assessment order for the year 2011-12.5. Disposal of writ petition and contempt case regarding interest computation and adjustments.6. Appeal against revised assessment order for the assessment year 2011-12.Issue 1: Refund of excess amount for assessment year 2011-2012The petitioner, a registered dealer under the Kerala Value Added Tax Act, sought a refund of Rs. 20,11,109/- for the assessment year 2011-12. After a writ petition, the High Court directed the assessing authority to consider the refund request within two months and compute the total refund amount with interest as per Section 89 of the KVAT Act.Issue 2: Assessment and non-compliance for assessment year 2012-2013Despite notices served under Section 25 and Section 95 of the KVAT Act for the assessment year 2012-2013, the petitioner did not respond or provide required documents. An ex-parte assessment order was passed, determining a due amount of Rs. 19,47,790/- after adjusting the refund amount from the previous year.Issue 3: Rectification of assessment ordersMistakes in interest calculation led to rectification of assessment orders for the years 2011-12 and 2012-13. The rectified order for 2012-13 showed a due amount of Rs. 22,18,689/- after adjustments.Issue 4: Cancellation and rectification of assessment order for the year 2011-12The Deputy Commissioner proposed cancellation due to irregularities in the assessment order for 2011-12. A rectified order created a demand of Rs. 65,79,113/- and cess of Rs. 65,611/-.Issue 5: Disposal of writ petition and contempt caseAfter filing petitions regarding interest computation, the court closed the case with the petitioner given the option to challenge the computation in appropriate proceedings.Issue 6: Appeal against revised assessment orderThe petitioner appealed against the revised assessment order for 2011-12. The appellate authority modified the order, leading to a refund of Rs. 90,29,252/-, which was later adjusted to Rs. 49,96,500/- after rectification of interest calculation.In conclusion, the court dismissed the writ petition stating that the petitioner should seek remedy through the Appellate Authority under the Statute for any grievances, as the court cannot review the assessment/refund order. Time spent on the writ petition will be considered if an appeal is filed.