Ajay Alloys Private Limited vs. Smt Nandini Paliwal & Ors.
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The petitioner, Ajay Alloys Private Limited, filed a contempt petition before the Delhi High Court against Smt. Nandini Paliwal & Ors. The contempt petition sought initiation of proceedings for willful disobedience of an order dated April 3, 2025, passed by the same High Court in Writ Petition (C) No. 2368/2025. The original writ petition concerned the release of a refund amount of Rs. 47,46,341/- along with interest, due under the Delhi Value Added Tax Act, 2004. The refund was claimed for the fourth quarter of 2013-14, with the petitioner asserting that the refund became due on October 28, 2014, and the extended period of six years expired on March 31, 2020. The original order directed the concerned official to examine the matter and pass an order on refund within two months. The contempt petition was filed alleging non-compliance with this order.
Held
The Court disposed of the contempt petition by directing the respondents to comply with the order dated 03.04.2025 once the Directors of the petitioner appear before the concerned office with the necessary documents. The Court noted that the respondents had informed the petitioner to appear at their office, and the petitioner's counsel agreed that the Directors would appear within two weeks. The Court reasoned that upon the petitioner's appearance and production of documents, the respondents would be obligated to proceed with the refund as per the earlier order. The Court explicitly stated that in case of non-compliance after the petitioner's appearance, the petitioner would be at liberty to revive the present petition. No contempt was formally found or punished in this order, as the focus shifted to ensuring compliance of the original writ order.
Key Issues
1. Whether the respondents have deliberately and willfully disobeyed the directions issued by this Hon'ble Court vide order dated 03.04.2025 in Writ Petition (C) No.2368/2025, thereby warranting initiation of contempt proceedings under Section 12 of the Contempt of Courts Act, 1971? Petitioner's Contention: The petitioner argued that the respondents have failed to comply with the court's order dated 03.04.2025, which directed the examination and passing of an order on refund within two months. This non-compliance, according to the petitioner, constitutes willful disobedience. The petitioner seeks the issuance of the refund along with interest and imposition of costs. Respondents' Contention: The respondents, through their counsel, submitted that the petitioner had been asked to appear at their office through various communications. They stated that the Directors of the petitioner company would appear before the concerned office with necessary documents within two weeks. This submission implies that the delay in compliance was due to the petitioner's non-appearance and that compliance would be ensured upon their appearance.
Sections Cited
Section 12, Section 11, Section 2(b), Article 215, Article 226, Section 38(3)(a)(ii), Delhi Value Added Tax Act, 2004
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2025
This hearing has been done through hybrid mode. CM APPL. 55067/2025 (exemption)
Allowed, subject to all just exceptions. Application is disposed of. CONT.CAS(C) 1332/2025
The present petition under Article 215 of the Constitution of India read with Sections 11 and 2(b) of the Contempt of Courts Act seeks following prayers:- “(a) Initiate contempt proceedings against the respondents and punish them u/s 12 of the Contempt of Courts Act, 1971 for the deliberate and willful disobedience of the directions issued vide order dated 03.04.2025 by this Hon’ble Court in Writ Petition (C) No.2368/2025; (b) Direct the respondents to immediately, comply with the order dated 03.04.2025 by issuing refund along with interest thereon; (c) Impose costs upon the respondents for keeping the petitioner deprived of the substantial amount of refund and interest thereon; and (d) Pass any other order(s) as deemed proper in the facts and circumstances of the case.” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/09/2025 at 11:51:12
Vide order dated 03.04.2025 in W.P.(C) 2368/2025 learned Division Bench of this Court passed the following order:- “2. The present petition is filed under Article 226 of the Constitution of India read with Delhi Value Added Tax Act, 2004 ('DVAT' Act) seeking release of refund amount Rs.47,46,341/- along with interest.
The Petitioner, who is registered under the DV AT is stated to have filed the quarterly return for the fourth quarter of 2013-14. The said return was based on self-assessment. According to the Petitioner, the refund became due in terms of Section 38(3)(a)(ii) of Delhi Value Added Tax Act, 2004 on 28th October, 2014. The Petitioner submits that the extended period of six years has also expired on 31 st March,2020 but the refund has still not been granted.
The Court notices that there is no letter or representation made by the Petitioner seeking refund during this entire period.
The concerned official is present in the Court. Considering the above circumstances, let the matter be examined and the order on refund be passed in accordance with law within a period of two months.”
Learned counsel appearing on behalf of respondent, on advance notice, submits that by way of various communications which are annexed with the present petition, the petitioner have been asked to appear at their office at DEPARTMENT OF TRADE & TAXES/GST - WARD-63, 8th Floor, Room No. 804, VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002. 6. Learned counsel appearing on behalf of the petitioner submits that the Directors of the petitioner company shall appear before the said office alongwith necessary documents within a period of 2 weeks from today.
On the Directors of the petitioner appearing before the concerned office, the respondent shall comply with the order dated 03.04.2025. 8. The present petition is accordingly disposed of.
Pending application(s), if any, also stand disposed of. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/09/2025 at 11:51:12
In case of non-compliance, the petitioner will be at liberty to revive the present petition.
AMIT SHARMA, J SEPTEMBER 02, 2025/sn/yg
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/09/2025 at 11:51:12
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.