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TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1341
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....ner vide the impugned order dated 9th May, 2024 passed by the Office of the GST Officer (Ward-10, Zone-II), Department of Trade & Taxes. 3. The brief background as captured in the counter affidavit by the Department is that, for the years 2015-16 and 2016-17 certain demands were raised and on 27th August, 2021, a DVAT-25A notice was issued to the Petitioner for recovery of pending demand to the tune of Rs. 31,96,110/-. Since the Petitioner had not replied to the same, the Department resorted to attachment proceedings of the bank account of the Petitioner on 23rd December, 2021. Thereafter, from the bank account, a sum of Rs. 14,54,896/- was credited to the Government. The demands against the Petitioner were reduced vide order dated 24th ....
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....om bank on 23.12.2021 and Special OHA passed orders on 24.12.2021 and thereafter, vide Challans dated 25.12.2021, Dealer deposited the reduced demands. Therefore, delay in settling the Government dues and depositing the same is also attributable to the Dealer. It is a matter of record that as soon as the application in Form DVAT-21 was filed, the processing including verification of records was started and completed in a logical span of time without any deliberate delay. It is observed that time period taken for processing the application was due to mandatory procedural requirement involving due verification and therefore, Dealer is not entitled for any interest amount on the refund of Rs. 14,54,896/-. 6. In view of the above discu....
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....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 withholdi....
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.... (b) the date that the overpaid amount was paid by the person, until the date on which the refund is given. PROVIDED that the interest shall 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 of the delay attributable to him shall be excluded from the period for which the interest is payable. 5. A Co-ordi....
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....equired to be calculated from two months after filing of Form DVAT 21. 46. This aforesaid contention is unmerited. Once the taxpayer has succeeded in upsetting the assessments framed under Sections 32 or 33 of the DVAT Act, which results in vindicating its claim for refund either in part or as a whole, as claimed by furnishing a return, interest under Section 42(1)(a) of the DVAT Act would be payable from such date as the refund was due to be paid to the taxpayer. The expression, "the date that refund was due to be paid" must be construed as the date when such a refund ought to have been paid to the taxpayer. If the taxpayer succeeds in vindicating its stand that its claim for the refund was correct and that the subsequent assessme....
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....is enhanced or reduced as the case may be, the interest shall be enhanced or reduced accordingly. The second proviso makes it amply clear that an assessee is entitled to interest from the date when the amount ought to have been paid to him. If the amount of refund is reduced or denied and the taxpayer succeeds in the subsequent proceedings either in part or whole; in terms of the second proviso, the interest is required to be varied accordingly." As per the above decision, interest is payable from the date when the refund ought to have been paid. 6. The said decision was challenged by the Department before the Supreme Court in SLP(C) No. 022814/2023 titled Commissioner of Trade and Taxes v. Ramky Infrastructure Limited, however, the s....