2017 (5) TMI 1063

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....n Farasat and Mr. Ahmaed Said, Advocates O R D E R CM 18989/2017 (exemption) Allowed, subject to all just exceptions. W.P.(C) 4356/2017 1. Issue notice to the Respondents. Mr. Shadan Farasat, Advocate appears and accepts notice on behalf of the Respondents. 2. These kind of petitions on account of delay on the part of the Respondent DVAT Department in granting refund have flooded....

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....artment from creating demands when faced with a refund claim that is long overdue. 5. Yet, it has made no difference. Respondent No.2 the Value Added Tax Officer (VATO) of Ward 49, instead of processing the above refunds, considered it appropriate to issue, for the first time, the notices of default assessments of tax and interest dated 17th December, 2016 under Section 9 (2) of the Central Sal....

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....ted/deposited it against its output tax liability. 7. The Court is left with the distinct impression that the Respondent DVAT Department is uncaring for the settled legal position explained in several decisions of this Court holding that the pendency of a refund claim should not be viewed as an opportunity to create a fresh demand. The VATOs appear to be in a world of their own without any rega....

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....er the DVAT Act. It is in utter disregard of his statutory obligation of processing the refund claim in accordance and within the time stipulated for that purpose under the DVAT Act. The Court, therefore, has no hesitation to quash the default assessments of tax and interest dated 17th December, 2016 under Section 9 (2) of the CST Act and the default assessment of penalty dated 10th January, 2017 ....