Assistant Commissioner (CT) Vs Madhucon Projects Limited (Madras High Court)
The Madras High Court, in the case of Assistant Commissioner (CT) Vs Madhucon Projects Limited, dismissed a writ appeal filed by the tax authority, affirming the learned Single Judge’s order that directed the immediate refund of Rs. 1,14,89,741 to the assessee, Madhucon Projects Limited, for the assessment year 2008-2009.
Background of the Dispute
The core issue originated from the Value Added Tax (VAT) assessment of Madhucon Projects Limited, a contractor, for the assessment year 2008-2009. The assessee, originally registered in the Karur circle, had filed a writ petition seeking a writ of mandamus to compel the tax authorities to refund a sum of Rs. 1,14,89,741 along with interest.
Crucially, the assessment order for the relevant year was passed by the Assistant Commissioner (CT), Karur (West) Circle (the appellant), on October 12, 2011. This order, contained in Form-P (Refund Notice), explicitly determined the assessee’s total turnover to be Rs. 1,50,12,08,828 and confirmed that there were no tax arrears for 2008-2009. Instead, it identified an excess tax paid amounting to Rs. 1,14,89,741, which was liable for a refund.
Since the Assistant Commissioner failed to comply with his own refund notice, the assessee approached the High Court. The Single Judge examined the facts and directed the tax authorities to process the refund, noting that failure to do so within the stipulated time would trigger an additional interest liability at 6% per annum.
