TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 84
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....the interest ignoring the provisions of not following its own Circulars on the subject and the judgments pronouncement by our own Hon'ble court." FACTUAL BACKGROUND: 2. Petitioner is a registered dealer under Delhi Value Added Tax Act, 2004, [hereinafter 'DVAT Act'] and the Central Sales Tax Act, 1956, [hereinafter 'CST Act']. Petitioner filed quarterly returns for the 4th quarter of the assessment year ['AY'] 2016-17 and the 1st quarter of the Assessment Year 2017-18 on 01.06.2017 and 29.07.2017 respectively, therein claiming concessional rate of interest in respect of interstate sales on the basis of C Form. Petitioner reported interstate sales of Rs. 5,29,68,790/- and Rs. 2,39,20,824/- for the aforesaid two quarters and claimed a refund of Rs. 53,93,100/- and Rs. 24,47,850/- respectively against the 'C' Forms. 3. Since the claim for refund was not processed, petitioner filed writ petitions before this Court, praying that the directions be issued for refund of the amount claimed for the 4th quarter of assessment year 2016-17 and the first quarter of Assessment Year 2017-18. 4. Both the writ petitions were disposed of by common order dated 30.10.2017, which reads as under:- ....
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....titioner. 9. Feeling aggrieved, petitioner preferred WP (C) 10546/2021 before this Court. 10. Vide order dated 13.12.2022 passed by this Court, the assessment order dated 29.08.2020 was set aside. 11. The Assessing Authority in compliance of directions of this Court, sanctioned refund to the petitioner vide reference No. 677581 dated 06.03.2023 for Rs. 53,93,140/- with respect to 4th quarter of 2016-17 and reference No. 9002222952414 dated 06.03.2023 for Rs. 20,86,966/- with respect to 1st quarter of 2017-18. However, no interest was awarded. 12. Petitioner moved application on 28.03.2023, praying for grant of interest of Rs. 16,60,496/- on the refund of Rs. 53,93,140/- for the 4th quarter of 2016-17 and Rs. 6,42,556/- for the refund of Rs. 20,86,966/- for 1st quarter 2017-18 from the date of submission of 'C' Form till the issue of refund. However, the claim of interest was rejected vide order dated 11.04.2023. The operative part of the impugned order is reproduced as under:- "It is Worthwhile to mention here that since there were an investigation and legal issues involved in the instant case which has been ultimately decides in favour of the dealer by the Hon'ble Delhi High....
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....ed 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 the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is a quarter, or (b) carried forward to the next tax period as a tax credit in that period. (4) Where the Commissioner has issued a notice to the person under section 58 of this Act advising him that an audit, investigation or inquiry into his business affairs will be undertaken or sought additional information under section 59 of this Act, the amount shall be carried forward to the next tax period as a tax credit in that period. (5) The Commissioner may, as a condition of the payment of a refund, demand security from the person pursuant to the powers conferred in section 25 of this Act within fifteen days from the date on which the return was furnished or claim for the refund was made. (6) The Commissioner shall grant refund within fifteen days from the date the dealer furnishes the security to his satisfaction under sub-section (5)." 17. As per plain reading of the aforesaid provision, the Commissioner is obliged....
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....aken within the time frame in Section 38(3) of the DVAT act." 19. Rules 34 & 57 of the DVAT Rules, 2005 also deal with grant of refund and are extracted herein below:- 34. Refund of excess payment:- (1) A claim for refund of tax, penalty or interest paid in excess of the amount due under the Act (except claimed in the return) shall be made in Form DVAT-21, stating fully and in detail the grounds upon which the claim is being made. (2) Only such claim shall be made in Form DVAT-21 that has not already been claimed in any previous return. A claim for refund made in Form DVAT-21 shall not be again included in the return for any tax period. (3) The Commissioner shall issue notice to any person claiming refund to furnish security under sub-section (5) of section 38, in Form DVAT-21A. (4) Where the refund is arising out of a judgment of a Court or an order of an authority under the Act, the person claiming the refund shall attach with Form DVAT-21 a certified copy of such judgment or order. (5) When the Commissioner is satisfied that a refund is admissible, he shall determine the amount of the refund due and record an order in Form DVAT-22 sanctioning the refund and re....
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....process the same. With regard to the question of grant of interest, a Coordinate Bench of this Court in IJM Corporation Berhad Vs. Commissioner of Trade & Taxes 2017 SCC Online Del 11864 held that in terms of Section 42 of the DVAT Act, interest would be payable, if the refund is not paid within a period of two months of filing of the return. Paragraphs 16 & 17 of the said judgment are extracted below:- "16. Section 42 relates to interest and sub-section (1) thereof stipulates that an assessee who is entitled to refund shall be entitled to receive, in addition to the refund, simple interest at the annual rate notified by the government from time to time computed on a daily basis. It fixes the time from which the interest is payable i.e. the date on which refund was due to be paid to the assessee; or the date when the overpaid amount was paid by that person, whichever was later. Interest is payable up to the date on which the refund is given. Sub-section (1), therefore, fixes the starting point and the end point. With reference to the starting point, the date on which the refund was due to be paid to the assessee or the date when the overpaid amount was paid by the assessee, which....