FEMC PRATIBHA JOINT VENTURE Vs. COMMISSIONER OF TRADE

JUDGEMENT

(1.) This writ petition under Article 226 and 227 of the Constitution of India filed by the petitioner is directed against the respondent thereby assailing the impugned adjustment order dtd. 18/11/2022 and default notices of tax and interest for certain years, to be detailed hereinafter, under the Delhi Value Added Tax Act, 2004 [DVAT Act].

(2.) Briefly stated, the petitioner is a Joint Venture Group that had been engaged in the execution of work contracts for Delhi Metro Rail Corporation Ltd. [DMRC] and discharged its VAT liability under the DVAT Act as well as under the Central Act. For the purposes of executing various projects for DMRC, it had been making local purchases after bearing tax thereupon while on the other hand DMRC had also been deducting TDS on the gross turnover of the petitioner. The petitioner claimed refund of excess tax credit which arose due to Input Tax Credit [ITC], the credit of which was brought forward for a sum of Rs.17,10,15,285.00 for the 4th quarter of 2015-16 and of Rs.5,44,39148.00for the 1st quarter of 2017-18, along with the applicable interest as under Sec. 42 of the Delhi Value Added Tax Act of 2004. The original return for the above-mentioned quarter for 2015-2016 was filed on 12/5/2016, wherein a refund of Rs.18,49,00,377.00 was claimed. Subsequently, a revised return was filed on 31/3/2017 claiming refund of Rs.17,10,15,285.00. In so far as the 1st quarter of FY 2017-2018 is concerned, the revised return claiming a refund of Rs.5,44,39,148.00 was filed on 29/3/2019 by the petitioner

(3.) 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 dtd. 9/11/2022 requesting the respondent to consider its application for refund but instead it received the impugned adjustment order vide letter reference No. 66240 dtd. 18/11/2022. On the petitioner sending a letter dtd. 7/12/2022 to the Assistant Value Added Tax Officer [AVATO], objecting to the passing of the impugned order dtd. 18/11/2022 for the same being in violation of Sec. 38 (2) of the Act, it was made aware of the default notices of tax and interest dtd. 30/3/2020 for the 2nd, 3rd and 4th quarter 2015-2016; dtd. 23/3/2021 for the 1st and 4th quarter 2016-2017 under the Central Sales Tax Act 1956 [CST]; dtd. 30/3/2021 towards Annual Assessment for the year 2016 and lastly 26/3/2022 towards the 1st quarter of 2017-2018.