Excess VAT Retention Violates Articles 14 & 265: Jharkhand HC Directs Refund

Castrol India Limited Vs State of Jharkhand (Jharkhand High Court) Jharkhand High Court ruled that the tax department’s failure to refund excess tax deposits after a reassessment violates Articles 14 and 265 of the Constitution. The case involved Castrol India Ltd., which had deposited Rs. 24,00,000 for AY 2014-15 and Rs. 26,00,000 for AY 2013-14 as a condition for obtaining a stay on tax demands. Following a remand by the appellate authority, the final tax liability was significantly reduced, but the excess amount was not refunded despite multiple requests. The company filed writ petitions ...