Zydus Healthcare Limited Vs Commissioner (Sikkim High Court)
Summary: Zydus Healthcare Limited, earlier M/s German Remedies, approached the Sikkim High Court seeking refund of ₹4 crore deposited on 17.12.2016 as ad-hoc “security paid under protest” with the Commercial Tax authorities. The writ petition also sought interest at 6% or another appropriate rate from the date of deposit and quashing of pending assessment and reassessment proceedings as time-barred under sections 38 and 42A of the Sikkim VAT Act read with section 6A of the CST Act.
During the proceedings, counsel for the petitioner informed the Court that the ₹4 crore amount had already been refunded. In view of the refund, the petitioner requested closure of the writ petition because negotiations between the parties were continuing concerning the remaining prayers relating to interest and withdrawal of the pending assessment and reassessment proceedings.
The petitioner sought liberty to approach the High Court again if aggrieved by the State’s action concerning those remaining issues. The Government Advocate appearing for the respondents agreed to this proposal.
Accordingly, the Sikkim High Court closed and disposed of the writ petition with liberty as prayed for. The Court therefore did not adjudicate the merits of the petitioner’s claims regarding interest or whether the pending assessment and reassessment proceedings were time-barred.
FULL TEXT OF THE JUDGMENT/ORDER OF SIKKIM HIGH COURT
1. Mr. Jatin Arora, learned counsel for the petitioner submits that this matter pertains to the present writ petition with a prayer for refund of an amount of Rs.4.00 Crores deposited as ad-hoc “security paid under protest” on 17.12.2016 to the respondent no.1. The writ petition also seeks payment of interest at the rate of 6% or any other appropriate rate from 17.12.2016. The petitioner further seeks quashing of the pending assessment and reassment proceedings as time barred under section 38 and section 42A of the Sikkim VAT Act read with section 6A of the CST Act.
2. The learned counsel for the petitioner states that the amount of Rs.4.00 Crores has since been refunded to the petitioner. He therefore, submits that the matter may be closed since there is an ongoing negotiaton between the parties with regard to the other two prayers. He seeks liberty to approach this Court if they feel aggrieved by the action of the State on the question of interest and withdrawal of the pending assessment and reassessment proceedings.
3. The learned Government Advocate appearing for the respondents submits that they are aggreable to the proposal.
4. Accordingly, the writ petition stands closed and disposed of with liberty as prayed for.
