Case Law Details
La Mode Fashions Private Limited Vs Commissioner, Value Added Tax (Delhi High Court)
The short question that arises for consideration before this Court is the remedial measure by which the inadvertent and bonafide error can be corrected. Respondent has suggested a methodology in paragraphs 5 and 6 of the counter affidavit, as aforementioned. This methodology, however, cannot be accepted by the Court as this would entail a complicated procedure requiring the Petitioner to prefer an application for refund of Rs. 2,58,912/-. Respondent would be thereafter required to pass an order of refund in favour of the Petitioner. After getting the refund, Petitioner would have to deposit the said amount for the period 01.08.2016 to 31.08.2016, for which the tax stands deposited. This may also entail imposition of penalty under Section 86(9) of the DVAT Act. Imposition of penalty is called for where the assessee fails to furnish returns by the due date, which is not the position in the present case. Admittedly, Petitioner has deposited the requisite tax for the relevant quarter of the assessment period but has inadvertently mentioned the wrong period in the challan and therefore, cannot be, in our view, saddled with the liability of penalty.
In view of the aforesaid, the issue can be resolved by issuing a writ of mandamus to the Respondent to treat and read the period ‘01.08.2015 to 31.08.2015’ mentioned in the challan dated 29.09.2016, bearing No. 0510133290920160000156, issued by the HDFC Bank Ltd., as ‘01.08.2016 to 31.08.2016’. This, in our view, will obviate the lengthy and complicated procedure of applying for refund and deposit on the part of the Petitioner and will also save him from any penalty under the Tax Statute.
We, therefore, direct the Respondent to read the period ‘01.08.2015 to 31.08.2015’ mentioned in the challan dated 29.09.2016, bearing No. 0510133290920160000156, issued by the HDFC Bank Ltd., as ‘01.08.2016 to 31.08.2016’.
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