Trupthi Enterprises Vs Assistant Commissioner [ST] (Madras High Court)
Madras High Court addressed a dispute involving Trupthi Enterprises, a reseller, challenging an assessment order dated December 8, 2022, which levied a 14.5% interest rate instead of the expected 5%. The petitioner argued that the entire tax amount had already been recovered, making them eligible for a refund. Despite submitting a rectification application on January 31, 2023, no action had been taken by the GST department. The respondent, representing the GST department, acknowledged the need for a rectification application but claimed it had not been received. The court directed Trupthi Enterprises to resubmit the application within 15 days and ordered the GST department to dispose of the rectification application within four weeks, including providing a personal hearing to the petitioner. The case was disposed of with these instructions and without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Challenging he assessment order dated 08.12.2022, passed by the respondent and for a direction to the respondent to refund the amount of Rs.2,54,242/- with interest recovered from the petitioner.
2. The learned counsel appearing for the petitioner submitted that the petitioner is not a manufacturer of any goods and he is only a re-seller. The petitioner is also filing the returns declaring the same as sales either under the Tamil Nadu Value Added Tax Act, 2006 and also under the Central Sales Tax Act, 1956. Whereas the impugned Order has been passed directing the petitioner to pay 14.5% interest instead of 5%. In this regard the petitioner has given rectification application on 31.01.2023. Since the entire tax amount has already been recovered from the petitioner, he is entitled for refund. Hence, the order passed by the respondent has to be set aside.
