M/S Savi International vs. State Of Punjab And Ors.

Held

The Court, without expressing any opinion on the merits of the case, disposed of the writ petition by directing respondent No. 3 to decide the refund applications dated 14.3.2017 and 15.6.2017, along with the reminder dated 17.11.2017. Respondent No. 3 was instructed to pass a speaking order after affording an opportunity of hearing to the petitioner, within one month from the date of receipt of the certified copy of the order. Furthermore, if the petitioner was found entitled to the refund, it was to be released within the subsequent month, in accordance with the law. The Court did not decide on the entitlement to interest on the refund.

Facts

The petitioner, M/s Savi International, registered under the Punjab Value Added Tax Act, 2005, filed a writ petition seeking a mandamus to direct the respondents to release its refund along with interest. The petitioner claimed excess Input Tax Credit for the quarters ending 31.12.2016 and 31.3.2017. It applied for a refund of ₹15,17,470/- for the period 1.10.2016 to 31.12.2016 and ₹15,82,604/- for the period 1.1.2017 to 31.3.2017 to respondent No. 3 via VAT-29 applications dated 14.3.2017 and 15.6.2017. Despite a reminder sent on 17.11.2017, no action was taken by respondent No. 3. The petitioner argued that no response had been received on its refund applications and reminder.

Key Issues

1. Whether the petitioner is entitled to a refund of Input Tax Credit for the periods ending 31.12.2016 and 31.3.2017 under the Punjab Value Added Tax Act, 2005? (Question of law and fact). The petitioner contended that it had filed its returns and annual statements, showing an excess Input Tax Credit, and had duly applied for the refund. The petitioner argued that respondent No. 3 had failed to take any action on its refund applications and reminder. The respondents did not present any arguments in the judgment.