Allowed

M/S. Kanam Latex Industries Pvt. Ltd. v. the Assistant Commissioner

Kerala HC10 Jun 2016WP(C)/7482/2012

Case brief

AI extract

What is this about?

The Court allowed a writ petition seeking interest on tax refunds. It directed the respondents to pay interest at 10% per annum on refunded amounts from assessment years 2000-01 to 2004-05 within one month, noting that any subsequent tax due could be adjusted.

What did the court decide?

To pay interest on refunded amounts at 10% p.a. within one month from receipt of the judgment copy.

M/S. Kanam Latex Industries Pvt. Ltd. Vs the Assistant… — GST and Indirect Tax | Kerala HC (2016)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

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FRIDAY, THE 10TH DAY OF JUNE 2016/20TH JYAISHTA, 1938

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WP(C).No. 7482 of 2012 (I)

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PETITIONER :

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M/S. KANAM LATEX INDUSTRIES PRIVATE LTD., OOPPOOTTIL BUILDING, K.K. ROAD, KOTTAYAM -686 001, REPRESENTED BY ITS MANAGING DIRECTOR MR. RAVI ABRAHAM

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BY SENIOR ADVOCATE SRI.JOSEPH MARKOSE BY ADVS.SRI.V.ABRAHAM MARKOS

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SRI.MATHEWS K.UTHUPPACHAN SRI.BINU MATHEW SRI.TERRY V.JAMES SRI.B.J.JOHN PRAKASH SRI.TOM THOMAS (KAKKUZHIYIL)

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RESPONDENT(S) :

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1. THE ASSISTANT COMMISSIONER (KGST) COMMERCIAL TAXES, SPECIAL CIRCLE, KOTTAYAM - 686 001.

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2. STATE OF KERALA REPRESENTED BY THE SECRETARY (FINANCE), GOVERNMENT OF KERALA, SECRETARIAT, THIRUVANANTHAPURAM - 695 001.

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R1 & R2 BY GOVT. PLEADER SRI. BOBBY JOHN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10-06-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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...2/-

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WP(C).No. 7482 of 2012 (I)

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APPENDIX

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PETITIONER(S) EXHIBITS :

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-----------------------------------------

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EXT.P1	TRUE COPY OF JUDGMENT DATED 12-2-2009 OF THE KERALA HIGH COURT IN S.T REV.257/2007.
EXT.P2	TRUE COPY OF COMMON ORDER DATED 30-06-2009 IN THE SALES TAX APPELLATE TRIBUNAL, KOTTAYAM IN T.A NOS.181,182,183 & 192 OF 2008.
EXT.P3	TRUE COPY OF PETITIONER'S LETTER DATED 12-10-2009 TO THE 1ST RESPONDENT WITH ENCLOSURE.
EXT.P4	TRUE COPY OF PETITIONER'S LETTER DATED 27-03-2010 TO THE 1ST RESPONDENT.
EXT.P5	TRUE COPY OF PETITIONER'S LETTER DATED 30-10-2010 TO THE 1ST RESPONDENT.
EXT.P6	TRUE COPY OF PETITIONER'S LETTER DATED 2-11-2010 TO THE 1ST RESPONDENT.
EXT.P7	TRUE COPY OF PETITIONER'S LETTER DATED 17-02-2011 TO THE 1ST RESPONDENT.
EXT.P8	TRUE COPY OF ASSESSMENT ORDER DATED 7-3-2005 FOR 2000-01.
EXT.P9	TRUE COPY OF ASSESSMENT ORDER DATED 28-02-2007 FOR 2001-02.
EXT.P10	TRUE COPY OF ASSESSMENT ORDER DATED 29-12-2006 FOR 2002-03.
EXT.P11	TRUE COPY OF ASSESSMENT ORDER DATED 09-02-2007 FOR 2003-04.
EXT.P12	TRUE COPY OF ASSESSMENT ORDER DATED 15-03-2007 FOR 2004-05.
EXT.P13	TRUE COPY OF JUDGMENT DATED 31-03-2011 OF THIS HONOURABLE COURT IN WPC NO.10251/2011
EXT.P14	TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2000-01.
EXT.P15	TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2001-02.
EXT.P15(a)	TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2001-02.
EXT.P16	TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2002-03.

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(Contd...)

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WP(C).No. 7482 of 2012 (I)

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EXT.P17 TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2003-04.

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EXT.P18 TRUE COPY OF MODIFIED ORDER DATED 18-10-2011 OF THE 1ST RESPONDENT FOR 2004-05.

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EXT.P19 TRUE COPY OF PETITIONER'S LETTER DATED 11-10-2011 TO THE 1ST RESPONDENT.

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EXT.P20 TRUE COPY OF PETITIONER'S LETTER DATED 10-11-2011 TO THE 1ST RESPONDENT.

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EXT.P21 TRUE COPY OF STATEMENT SHOWING DETAILS OF REFUND PAID AND INTEREST DUE.

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RESPONDENTS' EXHIBITS : NIL

//TRUE COPY//

P.A. TO JUDGE

A.M. SHAFFIQUE, J.

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W.P.(C) No. 7482 of 2012

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Dated this the 10^th day of June, 2016

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JUDGMENT

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Petitioner has approached this Court seeking for a direction to the respondents to pay interest for the amount refunded under Exts.P14 to P18.

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The contention raised by the petitioner is that after

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orders were passed by this Court in S.T.Rev.No.257 of 2007 finalising assessment for the years 2000-2001 and finality orders dated 30.6.2009 for the assessment years 2000-2002 to 2004-05, though refund of tax was given to the petitioner as per Exts.P14 to P18, the respondent authority did not compute or pay the interest on the said amount, after the expiry of 90 days as contemplated under Section 44 (4) of the Act. Ext.P21 representation was submitted to the Assistant Commissioner (Commercial Taxes) showing the amount given as refund and interest accrued thereon, the total of which would come to Rs.8,94,769/-.

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W.P.(C) No. 7482 of 2012

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-2-

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Learned Government Pleader on instructions would

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submit that though statute prescribes for refund of the amount with interest, it has to be ascertained whether any amount is due from the petitioner as sales tax, under Kerala General Sales Tax Act or Kerala Value Added Tax Act.

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Having regard to the facts that the petitioner was entitled for refund as per the directions issued by this Court as well as the Tribunal and the refund orders had been issued by the Assistant Commissioner (Commercial Taxes), the authority was bound to pay interest at the rate of 10% per annum in terms of Section 44 (4) of the Act. This position is

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also covered by a judgment of this Court in Abraham Chacko

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v. Additional Sales Tax Officer [2006 (1) KLT 186].

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Under such circumstances, this writ petition is disposed of as under:

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(i) The respondent shall pay interest on the amounts refundable in terms of Exts.P14 to P18 at the rate of 10% from the date as specified in Ext.P21. The said amount shall be paid

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W.P.(C) No. 7482 of 2012

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-3-

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within one month from the date of receipt of a copy of this judgment. It is made clear that if any amount is due to the Department as sale tax for any subsequent years, it is open for the Department to give necessary adjustment in terms with

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Section 89 (3) of the Kerala Value Added Tax Act, 2003.

Sd/-

A.M. SHAFFIQUE

JUDGE

Scl/10.06.2016

M/S. Kanam Latex Industries Pvt. Ltd. v. the Assistant Commissioner

Case brief

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M/S. Kanam Latex Industries Pvt. Ltd. v. the Assistant Commissioner

Case brief

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