M/S. Sri Venkata Lakshmi Traders vs. Commercial Tax Officer
Held
The Court held that the requirement to pay 12.5% of the disputed amount applies only when an order results in an admitted tax liability, which is not the case when a refund claim is rejected. The rejection of a refund claim does not create a tax demand.
Facts
The petitioner, a cement trader, claimed a refund of excess input tax credit. The Commercial Tax Officer rejected the refund, and the Appellate Deputy Commissioner upheld this rejection, stating the petitioner needed to pay 12.5% of the disputed amount.
Key Issues
Whether the Appellate Deputy Commissioner was correct in demanding 12.5% of the disputed amount for a rejected refund claim, and if such a demand is applicable in cases of refund claims.
Sections Cited
Section 31(1)
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE RAKESH KUMAR AND THE HON’BLE SRI JUSTICE A.V.SESHA SAI
WRIT PETITION No.20464 of 2019
ORDER: (Per Hon’ble Sri Justice A.V.Sesha Sai) Heard Sri S.Dwarakanath, learned counsel for the petitioner and Sri T.C.D.Sekhar, learned Government Pleader for Commercial Taxes, appearing for the respondents.
In the present Writ Petition, challenge is to the order passed by the Appellate Deputy Commissioner (CT), Tirupathi, vide ADC Order No.4605/19-10-2019, dated 19.10.2019. 3. The petitioner herein is engaged in the business of trading in cement and is a registered dealer under the Andhra Pradesh Value Added Tax Act, 2005 (for short, ‘the VAT Act’) on the rolls of the Commercial Tax Officer, Macherla Circle, Macherla. In the Value Added Tax return for the month of March, 2017, the petitioner herein made a claim before the Commercial Tax Officer, first respondent herein, for refund of Rs.23,77,446/- on the ground that the amount represents the excess input tax credit. The Commercial Tax Officer by virtue of an order bearing Ref.No.37939708123/2016-17, dated 04.07.2019, rejected the said request for refund. Aggrieved by the said or
The judgment continues below.
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