Fair Deal Leather Suppliers Vs Value Added Tax Officer (Delhi High Court)
The Delhi High Court disposed of two connected writ petitions raising an identical issue regarding entitlement to interest on delayed refund under the Delhi Value Added Tax Act, 2004 (DVAT Act). The petitioner had filed its DVAT return for the quarter ending 31 March 2009 on 26 April 2009, claiming a refund of ₹2,87,538. An ex parte default assessment order under Section 32 of the DVAT Act was later passed, rejecting the refund claim. The petitioner contended that the assessment order was neither served nor uploaded on the portal.
Upon becoming aware of the rejection, the petitioner approached the High Court in 2017. By an order dated 11 April 2018, the Court permitted the petitioner to avail the statutory appellate remedy and left open issues relating to limitation and service of the assessment order. Pursuant thereto, the appellate authority entertained the appeal and, by order dated 8 February 2024, remanded the matter to the assessing authority for fresh consideration after granting an opportunity to produce documents. Following re-examination, the assessing authority sanctioned the refund on 14 August 2024, and the amount was credited to the petitioner’s account on 15 January 2025.
