Allowed

Sethia Handicrafts Pvt. Ltd. v. State of Rajasthan

Rajasthan HC6 Jul 2022CW/4500/2020

Case brief

AI extract

What is this about?

This writ petition challenged the prolonged withholding of Input Tax Credit approx. Rs. 7.3 lakhs by the Rajasthan Commercial Taxes Department for six years. The court directed the department to verify and release the pending claim strictly as per statutory provisions.

What did the court decide?

Directed the Respondent Commercial Taxes Officer, Circle-E, Jodhpur to verify and release the Input Tax Credit claim of the petitioners within 30 days.

Sethia Handicrafts Pvt. Ltd. Vs State of Rajasthan — GST and Indirect Tax | Rajasthan HC (2022)

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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT

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JODHPUR

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D.B. Civil Writ Petition No. 4500/2020

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Sethia Handicrafts Pvt. Ltd., Having Its Registered Office At 3505/6 Oberoi Woods Tower B, Mohan Gokhale Road,, Goregaon (E), Mumbai And Having It Factory At E-65/66, Boranada Industrial Area, Phase I, Jodhpur, Through Managing Director Niraj Sethia S/o Nirmal Sethia Aged About 48 Years

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----Petitioner

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Versus

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State Of Rajasthan, Commercial Taxes Department Through Commissioner, Commercial Taxes Department, Government Of Rajasthan, Jaipur

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Commercial Taxes Officer, Circle-E, Commercial Taxes Department, Jodhpur.

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----Respondents

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Connected With

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D.B. Civil Writ Petition No. 4494/2020

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Sethia Handicrafts Pvt. Ltd., Having Its Registered Office At 3505/6 Oberoi Woods Tower B, Mohan Gokhale Road, Goregaon (E), Mumbai And Having Its Factory At E-65/66, Boranada Industrial Area, Phase I, Jodhpur, Through Managing Director Shri Niraj Sethia S/o Shri Nirmal Sethia Aged About 48 Years.

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----Petitioner

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Versus

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State Of Rajasthan, Commercial Taxes Department Through Commissioner, Comercial Taxes Department, Government Of Rajasthan, Jaipur.

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Commercial Taxes Officer, Circle-E, Commercial Taxes Department, Jodhpur.

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----Respondents

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For Petitioner(s) : Mr. Shridhar Mehta. For Respondent(s) : Mr. Hemant Dutt.

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HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR

Order

(2 of 3)

[CW-4500/2020]

06/07/2022

These two writ petitions have been preferred by the petitioners herein with the prayer to direct the respondent Commercial Taxes Officer to verify and release the Input Tax Credit claim of the petitioner which is pending for the last nearly 6 years as on date.

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Admitted facts as available on record indicate that the GST returns submitted by the petitioners for the financial year 20152016 and 2014-2015 respectively were assessed by the Commercial Taxes Department, Jodhpur as mentioned in the orders dated 20.05.2016 (Annexure-2 in both writ petitions) and ITC refund to the tune of Rs.7,40,407 and Rs.5,94,911/respectively was credited to the petitioners. However, ITC claim of Rs.3,96,179/- and Rs.3,37,418/- for the financial year 2015-2016 and 2014-2015 respectively was withheld for want of verification. The petitioners have submitted that the respondent department cannot sit tight over the Input Tax Credit accruing to the petitioners for such a long period without any justification.

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Shri Hemant Dutt, Advocate representing the Commercial Taxes Department is not in a position to dispute the fact that the petitioners filed the GST returns in time but till date, no order has been passed by the department on the refund claim of the petitioner.

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Section 53 of the RVAT Act, 2003 stipulates the procedure for refund available to a dealer under the provisions of the Act. The respondent authorities are required to act strictly in accordance with this statutory provision and to deal with the prayer of refund made by the petitioner within a specified time frame. In any event, a grossly lethargic/ lackadaisical approach of

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(3 of 3)

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[CW-4500/2020]

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sitting tight for almost 6 years over the petitioners’ refund claim cannot be approved.

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In this view of the matter, it is apparent that the respondent Officers have miserably failed to perform the duties cast upon them by law.

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In this background, the respondent Commercial Taxes Officer, Circle-E Commercial Taxes Department, Jodhpur is directed to verify and release the Input Tax Credit claim of the petitioners within a period of 30 days from today in terms of Section 53 of the RVAT Act which was prevailing at the relevant point of time.

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The writ petitions are allowed of in these terms.

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A copy of this order be placed in each file.

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No order as to costs.

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(KULDEEP MATHUR),J

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(SANDEEP MEHTA),J

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27-Tikam/-

Sethia Handicrafts Pvt. Ltd. v. State of Rajasthan

Case brief

What is this about?

What did the court decide?

Sethia Handicrafts Pvt. Ltd. v. State of Rajasthan

Case brief

What is this about?

What did the court decide?

What the court decided

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