Ashok Leyland Ltd Vs Commissioner (Delhi High Court)
Delhi High Court held that interest under section 42 of Delhi Value Added Tax Act entitled to the petitioner as department has illegally retained the money of the petitioner for the long time.
Facts- The petitioner is a manufacturer of motor vehicles and was registered under the DVAT Act and Central Sales Tax Act. The assessment under the CST Act for the year 2011-12 was framed vide order dated 21.03.2016 creating a demand on account of non-furnishing of declaration forms.
The petitioner deposited an amount of Rs. 1,45,09,588/-. The petitioner then filed objections before the Special Objections Hearing Authority. SOHA, vide order dated 05.10.2018 allowed benefit of declaration forms and reduced the demand created vide assessment order to Rs. 50,38,148/-. The same resulted in excess payment of Rs. 94,71,440/- by the petitioner.
The amount of Rs. 94,71,440/- was not adjusted /claimed in any of the returns furnished under the DVAT Act. Petitioner filed applications in form DVAT-21 for the respective tax periods of AY 2011-12 claiming refund of the said amount. Despite reminders and regular follow ups, the refund was not released, whereupon the present writ petition was filed by the petitioner.
