M/S Sherbrooke Aluminium Products vs. The State Of Kerala

Facts

The petitioner, M/s Sherbrooke Aluminium Products, filed a writ petition seeking a direction for respondents 4 and 5 to consider their applications (Exts.P3(a) and P3(b)) for modification of assessments and refund of excess tax paid. The petitioner had filed self-assessment returns for the assessment year 2008-09 under the Kerala Value Added Tax Act. Following an order of escaped assessment by the 3rd respondent, subsequent appeals and rectification applications led to a finding that the petitioner had paid an excess of Rs.7,87,054/- for the assessment year 2008-09. Similarly, for the assessment year 2013-14, an excess payment of Rs.1,62,016/- was found. The petitioner's applications for refund were pending with respondents 4 and 5, leading to the present writ petition due to inaction.

Held

The Court allowed the writ petition. It directed the competent authority among respondents 5 and 4 to consider Exts.P3(a) and P3(b) and refund the excess tax paid by the petitioner, as reflected in Exts.P1 and P2, in accordance with law and expeditiously, at any rate, on or before 31.08.2023. The Court clarified that it had not expressed any opinion on the merits of the matter or the petitioner's entitlement to interest on the delayed repayment. The petitioner's right to claim interest for delayed refund was left open to be agitated in appropriate proceedings. The Court noted the submission by the respondents that the refund application was in the processing stage and would take 60 days from 06.05.2023 to complete.

Key Issues

1. Whether the Court should direct respondents 4 and 5 to consider the petitioner's applications for modification of assessments and refund of excess tax paid, as per Exts.P3(a) and P3(b)? The petitioner argued that despite the orders (Exts.P1 and P2) finding excess tax paid for assessment years 2008-09 and 2013-14, respondents 4 and 5 had failed to act on their applications for refund, necessitating judicial intervention. The respondents, represented by the Senior Government Pleader, submitted that the Commissioner of State Tax had intimated that the petitioner's refund application was in the processing stage and would take 60 days from 06.05.2023 to complete. The respondents did not contest the petitioner's claim for refund but indicated a procedural timeline.