Case Law Details
Rashtriya Transport Corporation Vs Commissioner Of Delhi Goods And Service Tax & Anr. (Delhi High Court)
In a significant ruling, the Delhi High Court has clarified the computation of interest on refunds under the Delhi Value Added Tax (DVAT) Act. The case of Rashtriya Transport Corporation vs Commissioner of Delhi Goods and Service Tax & Anr. centered around the start date for calculating interest on a refunded amount. The Court decided that interest should be computed from the date of the DVAT Appellate Tribunal’s order, not from the initial date of deposit. This decision provides important guidance on the application of the DVAT Act’s provisions and affects how interest on refunds should be handled.
Detailed Analysis
The petitioner, Rashtriya Transport Corporation, engaged in transporting goods, was initially assessed with tax and penalties amounting to Rs. 4,91,096 and additional penalties under sections 86(19) and 86(14) of the DVAT Act. Following a survey by the Department’s officers, a default assessment was framed. Dissatisfied with the assessment, the petitioner appealed to the Objections Hearing Authority (OHA), which upheld the assessment, prompting the petitioner to pay the disputed amount on April 27, 2006.
The case took a turn when the DVAT Appellate Tribunal partially allowed the petitioner’s appeal, setting aside the penalty under Section 86(19). The petitioner continued to seek relief, leading to a remand by the High Court to the Tribunal, which ultimately decided in favor of the petitioner on May 10, 2023, nullifying the assessments and penalties imposed.
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