AI Drafter 
TaxTMI 
TaxTMI 
2024 (10) TMI 798
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....in quarters was thereafter released but without payment of interests. Thereupon, the petition was amended by the petitioner. FACTUAL BACKGROUND 3. The petitioner is a manufacturer of motor vehicles and was registered under the DVAT Act and Central Sales Tax Act ['CST Act']. The assessment under the CST Act for the year 2011-12 was framed vide order dated 21.03.2016 creating a demand on account of non-furnishing of declaration forms. 4. The petitioner deposited an amount of Rs. 1,45,09,588/-. The petitioner then filed objections before the Special Objections Hearing Authority ['SOHA']. SOHA, vide order dated 05.10.2018 allowed benefit of declaration forms and reduced the demand created vide assessment order to Rs. 50,38,148/-. The same resulted in excess payment of Rs. 94,71,440/- (Rs. 1,45,09,588/- Rs. 50,38,148/-) by the petitioner. 5. The amount of Rs. 94,71,440/- was not adjusted /claimed in any of the returns furnished under the DVAT Act. Petitioner filed applications in form DVAT-21 for the respective tax periods of AY 2011-12 claiming refund of the said amount. 6. Despite reminders and regular follow ups, the refund was not released, whereupon the present writ ....
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....rter; 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). (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 2....
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.... (3) The Commissioner may, for reasons to be recorded in writing, issue notice to any person claiming refund to furnish security under sub-section (5) of section 38 in Form DVAT 21A, of an amount not exceeding the amount of refund claimed, specifying therein the reasons for prescribing the security. (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 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....
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....) of the DVAT Act. The obligation of amount of refund payable towards any other amount due is clearly of such outstanding amounts that satisfies the two conditions. First, that the amount is due and payable when the refund is required to be processed, that is, within the period of one month or two months as specified under Section 38 (3) (a) of the DVAT Act. And second that the dues are other than that covered under the quantification, determination or assessment resulting in the claim of the refund. 15. The DVAT Act, 2004 provides strict guidelines for the grant of refund which are mandatory and not discretionary. The Supreme Court in the case of Prime Papers & Packers v. Commissioner of VAT & Anr. 2016 SCC OnLine Del 4211, reiterated the aforesaid position as under:- "8. There have been numerous judgements rendered by this Court emphasizing the mandatory nature of the time limit set out under Section 38 of the DVAT Act. Instead of burdening this judgement again with the extracts of those decisions, the Court would only like to set out the list of such decisions as under: (i) Swarn Darshan Impex (P) Limited v. Commissioner, Value Added Tax (2010) 31 VST 475 (D....
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....erence 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, whichever is later is applicable. There is also stipulation in the first proviso with regard to adjustment, deduction etc. with which we are not concerned in the present case. The second proviso stipulates that if the amount of such refund is enhanced or reduced, as the case may be, the interest would be enhanced or reduced accordingly. Explanation to the sub-section (1) states that if the delay in grating the refund is attributable to the assessee, whether wholly or in part, the period of delay attributable to him shall be excluded from the period for which interest is payable." 18. Harmonious reading of Section 38 and 42 makes it clear that interest is payable to the petitioner from the date when it accrued in terms of Section 38 (3) (a) (ii) of 2004 DVAT Act. 19. There is no material on record to indicate that the petitioner was in any manner responsible for delay in processing of the refund. There is not even any such allegation in the counter affidavit filed by the respondent. In terms of statutory time frame which s....