TaxTMI 
TaxTMI 
2016 (2) TMI 612
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....s are engaged in the business of leasing goods, including electric meters in the State of Gujarat. For such purpose, they entered into higher purchase agreements. At the relevant time, the petitioners were registered under the State as well as the Central Sales Tax Act during the period between 1994-2000. There were legal disputes, about which, State would have jurisdiction to levy sales tax on lease transactions, if the lease is executed in one State but the goods are situated in another State. Under such situation, petitioners had paid sales tax to the State Sales Tax Department under protest on the lease agreements outside the State of Gujarat. The situation, however, was clarified by the Supreme Court in case of 20 th Century Finance Co....
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....r which, the petitioners' right to seek such refund arose. In other words, for one assessment year, the interest on refund was computed from 09.07.2009 i.e. the date of the judgement of the Tribunal where no rectification application was filed by the department. In another case, interest was computed from 07.03.2013 i.e. the date of the order of the Tribunal on rectification application of the department and, in third case, such interest was computed from 18.03.2013 i.e. the date of the judgement of the first appellate authority. The case of the petitioners is that the refund should carry interest for the entire period from the date of the deposit of the tax till actual payment in terms of Section 54(1) of the Sales Tax Act. 6. When th....
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....uires to be scrutinized with the permission of Hon'ble Court. In the light of the above, your application for interest on refund is hereby rejected. " The authority further stated that even the refund already paid alongwith interest is recoverable. Inter alia on such grounds, the application of the petitioners came to be dismissed. 7. Having heard learned counsel for the parties and having perused the documents on record, in our opinion, the competent authority has committed a serious error in rejecting the application of the petitioners for interest. As noted, the petitioners succeeded before the Tribunal and the appellate authority, pursuant to which, the refund had to be paid. Such refund was actually paid to the petitioners al....