TaxTMI 
TaxTMI 
2019 (5) TMI 805
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....ading of shoe accessories and is registered under the DVAT Act. In accordance with the provisions of the statute, the petitioner pays tax on purchases made within the state ('input tax') which is adjusted against the tax payable on sales ('output tax'). The petitioner claims refunds on account of the fact that its output tax liability is less than the input tax paid. To the extent that the petitioner's sales are inter-state sales, it is entitled to a concessional rate of tax of 2% against C forms. 3. For the quarter 01.01.2014 to 31.03.2014, the petitioner filed a return claiming a refund of Rs.17,59,874/-. The failure of the respondents to issue the refund led to the filing of W.P(C) 8762/2018 before this Court. However, after notice wa....
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....st, if any, paid by such person in excess of the amount due from him. (2) Before making any refund, the Commissioner shall first apply such excess towards the recovery of any other amount due under this Act, or under the CST Act, 1956 (74 of 1956). (3) Subject to 1 [sub-section (4) and sub-section (5)] of this section, any amount remaining after the application referred to in sub-section (2) of this section shall be at the election of the dealer, either - [(a) refunded to the person, - (i) within one month after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is one month; (ii) within two months after the date on which ....
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....standing anything contained in this section, where - (a) a registered dealer has sold goods to an unregistered person; and (b) the price charged for the goods includes an amount of tax payable under this Act; (c) the dealer is seeking the refund of this amount or to apply this amount under clause (b) of sub-section (3) of this section; no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) of this section unless the Commissioner is satisfied that the dealer has refunded the amount to the purchaser. [(9)] Where - (a) a registered dealer has sold goods to another registered dealer; and (b) the price charged for the goods expressly incl....
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..... The petitioner has also placed on record a certified copy of the order sheets from the file of the respondents which reveal that the authorities were processing the petitioner's refund claim until 17.09.2018, when the file was put up to the concerned Special Commissioner. It appears that, pursuant to a discussion at the instance of the Special Commissioner, a further note was prepared on 12.11.2018 disclosing the "mismatch at first and second level" and seeking approval for raising a demand of the amounts mentioned. The approval having been granted by the Commissioner on the same date, the impugned default assessment was made and the refund adjustment order was issued. 9. On similar facts, this Court in (M/s. S.K. Engg. Works vs. C....
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.... A part from this registration of M/s Sharda Enterprise (07810471786) was cancelled W.E.F.12-12- 2013. Therefore, ITC to tune of Rs. In 2013-14 is disallowed." 3. This court in several judgments including Swarn Darshan Impex (P) Ltd. v. Commissioner, Value Added Tax (2010) 31 VST 475 (Del) and Prime Papers and Packers v. Commissioner VAT (2016 )94 VST 347 (Del) emphasized that the pendency of a refund application should not be viewed by the Department as an opportunity to create a fresh demand particularly if the time limits not only for making the refund but even for re-opening the assessments of previous years has long been crossed. 4. Yet, that is precisely what the Department has done here. The entire exercise indulged....