The Hon’ble High Court in the writ petition W.P.(C) 5250/2016 of M/s New Age Generators observed that processed refunds in the case of an assessee are being issued only once in a week due to certain security checks in the system of the Department. Such restriction is in contravention of Section 38(3) of DVAT Act.

In the light of aforesaid observations, the Commissioner (VAT) vide Order No. F.3(378)/Policy/VAT/2016/489­494 dated 21st July, 2016, has directed that all refunds of a registered assessee which are processed and found in order should be released in a time bound manner. Further, in case of multiple refunds of the same assesse if are needed to be issued within a week, the prior approval of the concerned zonal officer should be taken by the Ward Incharge. Furthermore, changes in software, the workflow and security checks needs to made in this regard expeditiously.

DEPARTMENT OF TRADE & TAXES

GOVT. OF NATIONAL CAPITAL TERRITORY OF DELHI

(Policy Branch)

VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI – 110 002

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No.F.3(378)/Policy/VAT/2016/489-494

Dated 21/07/2016

Order

Sub: Speedy disposal of all refund claims.

Whereas Refunds are required to be processed strictly in accordance with the provisions as laid down u/s 38 of DVAT Act and Rule 34 made there under and two circulars have, in this regard, already been issued vide No.6 of 2014-15, and vide No.12 of 2015-16 respectively;

And whereas, Recently, in the case of M/s New Age Generators in the W.P.(C) 5250/2016, the Hon’ble High Court has observed that processed refunds in the case of an assesse are being issued only once in a week due to certain security checks in the system of the Department. The Hon’ble High Court has, further, observed that restricting issuance of refunds to an assessee only once in a week is not in accordance with the provisions of Section 38(3) of DVAT Act.

Now, therefore, in the light of observations of Hon’ble High Court, it is directed that all refunds that are processed and found in order in respect of a registered assessee should be released in a time bound manner. Further, in case of multiple refunds of the same assesse if are needed to be issued within a week, the prior approval of the concerned zonal officer should be taken by the Ward Incharge. System branch is directed to make necessary changes in the workflow and security checks to incorporate these provisions. The necessary software changes may be carried out as expeditiously as possible

Non compliance of the above instructions shall be viewed seriously

(S.S. YADAV)

Commissioner (VAT)

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