2019 (5) TMI 1450

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....02. Briefly stated, the material facts are as under:- 03. The petitioner is a Private Limited Company involved in the business of walnuts. According to Section 55 of the Jammu & Kashmir Value Added Tax Act, 2005 (in short "Act"), it is inter alia envisaged that any goods, which are exported outside the territory of India are to be treated as Zero-rated in the context of taxation under the Value Added Tax Act, 2005. However, at the same time, it does not absolve the assessee to pay the input tax credit at the time of making such a sale. 04. Section 55(2) envisages that the dealer would be entitled to the refund of tax paid in the State. Section 55(3) envisages that the Assessing Authority shall refund to the dealer the amount of input ....

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.... not to have been paid in terms of the aforementioned provisions, the same needs to be considered by the authorities. 10. With consensus of the Learned counsel for the parties, this petition is disposed of with a direction to the respondents to consider the case of the petitioner with regard to refund of interest @ 24% per annum and pass appropriate orders in terms of Section 55 [4] of the Jammu and Kashmir Value Added Tax Act, 2005 within six weeks from today." 07. The Commissioner, Commercial Taxes Department appears to have held the petitioner entitled to interest only from the date of the order of approval for grant of refund issued on 30.10.2014. The following break-up of interest awarded, which the petitioner has been enti....

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....aling with the issue of interest Section 55(3) is relevant, which prescribes that the refund has to be made within a period of 120 days from the date of such sales. 12. Admittedly, the date of sale and the payment of vat tax, are the factors which would be in the knowledge of the department. The refund, therefore, should have certainly been made within a period of 120 days from the date of sales, inasmuch as, element of sale necessarily is accompanied with an element of deposit of tax. Equally clear is the provision with regard to the rate of interest. If the payment is delayed by three months beyond 120 days prescribed, it has to be @ 24% per annum simple interest. 13. Admittedly, the rate of interest in the present case, which would....