M/S Uppal Builders PVT. LTD. Thru Its Managing Director vs. Dy. Commissioner Commercial Tax And Another
Held
The Court held that the petitioner is entitled to simple interest on the refunded amount as it was not refunded within thirty days of becoming due. The State also admitted the liability to pay interest.
Facts
The petitioner sought a refund of an amount along with interest under the UP VAT Act, 2008. The State admitted that the principal amount was refunded but remained silent on the interest.
Key Issues
Whether the petitioner is entitled to interest on a delayed refund of tax under the UP VAT Act, 2008.
Sections Cited
Section 40(2)
AI-generated summary — verify with the full judgment below
Court No. - 35 Case :- WRIT TAX No. - 21 of 2018 Petitioner :- M/S Uppal Builders Pvt. Ltd. Thru Its Managing Director Respondent :- Dy. Commissioner Commercial Tax And Another Counsel for Petitioner :- Suyash Agarwal,Ankur Agarwal Counsel for Respondent :- C.S.C.
Hon'ble Bharati Sapru,J.
Hon'ble Piyush Agrawal,J.
Counter and Rejoinder Affidavits have been exchanged in this matter.
In the counter affidavit filed by the State it has been clearly stated that the amount has been refunded to the petitioner, however, the counter affidavit is silent about the interest. The petitioner has made a prayer for refund along with interest under the provisions of Sub-Section (2) of Section 40 of U.P. VAT Act, 2008. For ready reference Sub-Section (2) of Section 40 of U.P. VAT Act is quoted hereunder:- "Where amount found refundable in accordance with the provisions under sub-section (1), is not refunded within thirty days from the date of order of refund passed by the assessing authority or where order giving rise to refund is passed by any other authority or court, from the date of receipt of such order by the assessing authority by due process, the dealer shall be entitled to simple interest
The judgment continues below.
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