2026 (10) TMI 466

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....spondent filed a revised return on 25.12.2014 for the 4th quarter of the assessment year 2013-14 claiming a refund of Rs. 15,31,661/-. The demand of Rs. 1,836/- raised on 15.06.2015 under DVAT Act was paid by the respondent on 20.02.2016. The assessment under Central Sales Tax Act, 1956 (for short 'CST Act') was finalised on 26.05.2017, with nil demand. 2.1 The respondent filed a petition bearing W.P.(C) 9913/2020 seeking directions for the refund of Rs. 15,31,661/- along with interest. Vide order dated 07.12.2020, the petition was disposed of with a direction to the Assessing Authority to decide the issue of refund expeditiously. The Assessing Authority rejected the claim by order dated 26.08.2021. The writ petition filed by the respond....

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....aimed arises consequent to paper trail transactions without any physical movement of goods. In the entire chain of transactions the tax was not deposited and every dealer adjusted the Input Tax Credit (ITC). It is contended that the limitation prescribed under Section 34 of the DVAT Act was not applicable to rejection of claim for refund. 5. Per contra, the respondent was assessed under Section 31 of the DVAT Act and no action was taken under Sections 32 and 58 of the DVAT Act. The respondent was entitled to a refund under Section 38(3)(a)(ii) of the DVAT Act. The argument is that no substantial question of law is involved. 6. Section 31 of the DVAT Act provides for self assessment. The return filed under Section 26 or 27 of the DVAT ....

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....ions (4) and (5) and provides that the amount remaining after adjustment under sub-section (2) is to be refunded. Under sub-clause (i) the refund is to be made within one month from furnishing the return or making claim for refund where the tax period is one month. Sub-clause (ii) stipulates that where the tax period is a quarter, the refund is to be made within two months from the date of furnishing the return or making the refund claim. 7. The present case is of self assessment under Section 31 of the DVAT Act and the amount found due was deposited. No proceedings were initiated under Sections 32 and 58 of the DVAT Act. In this backdrop, Section 38 of the DVAT Act came into operation and the appellant was duty bound to refund the amoun....