Refund u/s 42(1) of DVAT Act cannot automatically be allowed for failure of OHA to pass an order

Jutla & Co. Vs Commissioner of Vat & Anr. (Delhi High Court)

Delhi High Court held that failure on the part of Objection Hearing Authority (OHA) to pass an order doesn’t automatically result in allowing refund u/s. 42(1) of the Delhi Value Added Tax Act, 2004.

Facts- The petitioner has filed the present petition, inter alia, praying that the respondents be directed to refund an amount of ₹14,12,185/-along with interest in terms of Section 42 of the Delhi Value Added Tax Act, 2004 (the DVAT Act). The petitioner had filed its Value Added Tax (VAT) return for the quarter 01.04.2017 to 30.06.2017, on 28.09.2017.

According to the petitioner, in terms of the said return, refund of ₹14,12,185/- of VAT was due for the said period.

AO did not accept the said returns and framed a default assessment of VAT for the year 2014­-15 and 2016-17. The petitioner filed its objections before the Objection Hearing Authority. However, the same were dismissed. Concededly, the OHA has not passed any order pursuant to the remand by the Tribunal.

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