R.H.G. Constructions vs. State Of Punjab And Another
Held
The Court disposed of the present writ petition without expressing any opinion on the merits of the case. The Court directed respondent No.2 to take a decision on the petitioner's letter dated 4.9.2018 (Annexure P-3) within a period of one month from the date of receipt of the certified copy of the order. This decision is to be made in accordance with the law, by passing a speaking order, and after affording an opportunity of hearing to the petitioner. The Court did not decide on the entitlement to interest or the quantum thereof, leaving these substantive issues for respondent No.2 to address.
Facts
The petitioner, RHG Constructions, engaged in construction works, filed its returns for the financial year 2016-17. The petitioner was entitled to a refund of VAT amounting to ₹1,11,96,804/- as its collected tax exceeded its output tax liability. The petitioner applied for this refund via Form VAT 29. After a previous writ petition (CWP-14771-2018) was disposed of on 1.6.2018, directing a decision on the refund application, an amount of ₹1,11,49,334/- was credited to the petitioner's account. However, this refund was made without any interest. The petitioner then sent a letter dated 4.9.2018 to respondent No.2 seeking interest on the delayed VAT refund, but received no response. This led to the filing of the present writ petition seeking a mandamus to issue the refund of ₹4,45,973/- as interest.
Key Issues
1. Whether the petitioner is legally entitled to interest on the delayed payment of VAT refund for the period from 1.4.2016 to 31.3.2017, under the relevant provisions of the Punjab Value Added Tax Act, 2005, and associated rules and circulars? Petitioner's Contention: The petitioner argued that it is entitled to interest on the delayed VAT refund. It relied on its letter dated 4.9.2018 (Annexure P-3) addressed to respondent No.2, which sought payment of interest on the delayed refund. The petitioner contended that despite this letter, no action has been taken by the respondent. Revenue's Contention: The judgment does not record any specific arguments or contentions made by the respondents (State of Punjab and another) regarding the petitioner's claim for interest on the delayed VAT refund.
Sections Cited
Article 226
AI-generated summary — verify with the full judgment below
CWP-7707-2019 -1- IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH CWP-7707-2019 Date of Decision: 20.3.2019 RHG Constructions, Ludhiana ...Petitioner Versus State of Punjab and another ...Respondents CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL. PRESENT: Mr. Rajesh Gupta, Advocate for the petitioner. AJAY KUMAR MITTAL, J.
Through the instant petition filed under Article 226 of the Constitution of India, the petitioner has prayed for issuance of a writ of mandamus directing respondent No.2 to issue refund of ` 4,45,973/- on account of interest on the delayed payment of VAT refund of ` 1,11,96,804. 2. The petitioner is engaged in the business of construction works. It filed the returns for the financial year 2016-17 along with the annual statement. The petitioner deducted tax at source while making payments. It had to pay advance tax on the goods purchased from outside the State of Punjab on the purchases made within the State of Punjab and was entitled to Input Tax Credit (ITC) of the tax paid to the seller. The petitioner was entitled to refund as the tax collected by the State for the period from 1.4.2016 to 31.3.2017 is more
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