AI Drafter 
TaxTMI 
TaxTMI 
2024 (10) TMI 797
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....department, visited the business premises of the petitioner and asked the petitioner to give a payment of Rs. 3,50,00,000/- to meet the target of Revenue, which was deposited vide challan dated 15.03.2013. Petitioner vide letter dated 28.03.2013, intimated the respondent about the amount deposited and gave instructions that the amount be retained as payment against demand, if any, raised on account of inspection conducted at their premises on 11.03.2013. 4. The assessment of the Company under the CST Act for AY 2012-13 was framed vide order dated 03.03.2017 creating demand on account of non-furnishing of declaration forms. During the pendency of assessment proceedings and after passing of the assessment order, petitioner deposited an amount of Rs. 52,52,640/- on different dates. Subsequently, petitioner filed objections before the Special Objection Hearing Authority ["SOHA"] for grant of benefit of declaration forms. 5. SOHA vide order dated 08.10.2018, allowed the benefit of declaration forms received and reduced the demands created vide previous assessment order to Rs. 35,71,180/-. Thus, petitioner became entitled to refund of Rs. 16,81,460/- (Rs. 52,52,640 - Rs. 35,71,180)....
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....the respondent. With regard to the refund orders already issued, it is submitted that the same does not include interest payable as per Section 42 of the DVAT Act for delay in processing the refund contrary to the settled law as enshrined in Swarn Darshan Impex (P) Ltd. Vs. Commissioner, Value Added Tax & ANR [(2010) 8 VSTI B-467 (Del.)], Prime Papers & Packers Vs. Commissioner of VAT & Anr. [W.P.(C) 6013/2016] and others. 13. Per contra, learned counsel for the respondent has argued that coercion and illegality impugned against the voluntary deposit of the amount of Rs. 3,50,00,000/- in apprehension of future demands that may be raised against the petitioner is an afterthought, for the petitioner admittedly never wrote any letter or made any representation before the respondent claiming that the said voluntary deposit was under any alleged coercion or alleged instructions by the respondent's Officers and rather the petitioner's letter dated 28.03.2013 asking the respondent to adjust the said amount towards pending/future liabilities or demands against the petitioner. It is submitted that delay of five years in claiming refund is attributable on the part of the petitioner. Since....
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....on 25 of this Act [within forty-five 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). [(7) For calculating the period prescribed in clause (a) of sub-section (3), the time taken to - (a) furnish the security under sub-section (5) to the satisfaction of the Commissioner; or (b) furnish the additional information sought under section 59; or (c) furnish returns under section 26 and section 27; or (d) furnish the declaration or certificate forms as required under Central Sales Tax Act, 1956, shall be excluded.]] [(8)] Notwithstanding 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 ....
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....(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 recording the calculation used in determining the amount of refund ordered (including adjustment of any other amount due as provided in subsection (2) of section 38). (5A) The order for withholding of refund/furnishing security under section 39 shall be issued in Form DVAT-22A. (6) Where a refund order is issued under sub-rule (5), the Commissioner shall, simultaneously, record and include in the order any amount of interest payable under sub-section (1) of section 42 for any period for which interest is payable. (7) The Commissioner shall forthwith serve on the person in the manner prescribed in rule 62, a cheque for the amount of tax, interest, penalty or other amount to be refunded along with the refund order in Form DVAT-22. PROVIDED that the Commissioner may transfer the amount of refund through Electronic Clearance System (ECS) in the bank account of the dealer. (8) No refund shall be allowed to a person who has not filed return and has not paid any amount....
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.... discrepancy in the return furnished by the petitioner and therefore the petitioner was not under any obligation to file the revised return under Section 28 of the DVAT Act, inasmuch as, the amount of Rs. 3,50,00,000/- deposited by the petitioner was not a tax but an amount deposited with the department, out of which, tax amount, if any, was to be deducted. 20. Admittedly, the assessment for the AY 2012-13 was framed vide order dated 31.03.2017 and the objections filed by the petitioner before SOHA were decided vide order dated 08.10.2018. The instruction given by the petitioner while depositing the amount of Rs. 3,50,00,000/- was that the said amount be retained as payment against demand if any raised on account of inspection conducted at their premises on 11.03.2013. The cause of action for claiming refund accrued only after passing of orders by SOHA, when it was found that no further tax was payable or to be adjusted out of Rs. 3,50,00,000/- already deposited. Soon thereafter i.e. on 12.10.2018, petitioner submitted form DVAT-21 claiming refund of Rs. 3,50,00,000/-. There is no inordinate delay in submitting the claim for refund after passing of the orders by SOHA. We also ta....
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....ll be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Act, or under the Central Sales Tax Act, 1956 (74 of 1956): PROVIDED FURTHER that if the amount of such refund is enhanced or reduced, as the case may be, such interest shall be enhanced or reduced accordingly Explanation : If the delay in granting the refund is attributable to the said person, whether wholly or in part, the period for the delay attributable to him shall be excluded from the period for which the interest is payable. (2) When a person is in default in making the payment of any tax, penalty or other amount due under this Act, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at the annual rate notified by the Government from time to time, computed on a daily basis, from the date of such default for so long as he continues to make default in the payment of the said amount. (3) Where the amount of tax including any penalty due is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated ....