Case Law Details
FEMC Pratibha Joint Venture Vs Commissioner of Trade And Taxes (Delhi High Court)
Delhi High Court held that as per Section 38(3)(a)(ii) of the DVAT Act a pre-deposit does not partake the character of tax or duty, and hence Tax Department can neither retain the same nor could it utilize the same for adjustment purposes towards tax liability for different assessment years.
Facts- The petitioner is a Joint Venture Group that had been engaged in the execution of work contracts for Delhi Metro Rail Corporation Ltd and discharged its VAT liability under the DVAT Act as well as the Central Act.
The petitioner claimed a refund of excess tax credit, which had arose due to Input Tax Credit, the credit of which was brought forward for a sum of Rs. 17,10,15,285/- for the 4th quarter of 2015-16 and of Rs. 5,44,39148/- for the 1st quarter of 2017-18, along with the applicable interest as under Section 42 of the Delhi Value Added Tax Act of 2004.
Shorn of unnecessary details, the petitioner asserts that the refund claimed for the assessment year 2015-2016 was pending for a long period of time and ultimately sent a letter dated 09 November 2022 requesting the respondent to consider its application for refund but instead it received the impugned adjustment order dated 18 November 2022.
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