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2015 DIGILAW 446 (RAJ)

Globus Spirits Limited v. State of Rajasthan

2015-02-18

PRAKASH GUPTA, SUNIL AMBWANI

body2015
ORDER 1. We have heard learned counsel appearing for the parties. 2. A refund is due to the petitioner, in pursuance to the order passed by Rajasthan Tax Board dated 01.08.2011, of an amount of Rs.5,52,23,563/-, which was held to be wrongly collected by the respondents. 3. By this writ petition, the petitioner has challenged the order dated 15.11.2011 passed by respondent No.3, by which the refunds were stayed, on the ground that the competent authority of the Department has given sanction to file revision against the order of Rajasthan Tax Board dated 01.08.2011, and thus, until the decision of the Rajasthan High Court, the refund be stayed. 4. It is admitted that the revision is pending against the order of Rajasthan Tax Board, in the High Court, in which no interim order has been passed. In this writ petition, the petitioner has also challenged the vires of Section 55 of the VAT Act as arbitrary, unreasonable and discriminatory, as it provides for only 6% interest per annum, on the amount, to be refunded. 5. We do not find any justification for the respondents to pass an order on its own, staying the refund of the amount, until the decision of the revision. Once the revision petition has been filed in the High Court, the Department can apply for an interim order, and until such interim order is passed, the Department is obliged to refund the amount, in terms of the order passed by Rajasthan Tax Board. The department cannot be and act as a judge of its own cause. 6. Be that as it may, the parties have agreed that the principal amount with interest @ 6% per annum be refunded within six weeks, provided the petitioner submits bank guarantee of the amount of refund within the same period, to the satisfaction of the Assessing Authority. Leaving the question of the validity of Section 55 of the VAT Act, providing for only 6% interest on refund, open, to be challenged in some other petition, we direct that the principal amount alongwith 6% interest per annum, shall be refunded within six weeks, subject to furnishing of security in the form of bank guarantee by the petitioner, to the satisfaction of the Assessing Authority. With these observations, the Writ Petition is disposed of. The interim application is also disposed of.