SHYAM ELECTRICALS Vs. STATE OF KERALA

JUDGEMENT

(1.) Heard Smt. S. Lalitha for the petitioner and Sri T. Karunakaran Nambiar, Special Government Pleader (Taxes) for the respondents,

(2.) Goods under transport to the petitioner at Ernakulam by truck CTX 9037, were detained at the sales tax check post at Vazhikkadavu on 1st November 1991 under S.29A of the Kerala General Sales Tax Act, 1963 (the Act) on the ground that evasion of sales tax was suspected. Petitioner was directed to furnish security for double the amount of tax alleged to be attempt to be evaded as a condition for allowing onwards transport of the goods. Petitioner accordingly deposited Rs. 73,995 with the Check Post Inspector and the goods were released. A copy of the receipt evidencing deposit of Rs. 73,995 on 5th November 1991 is Ext, P-1. The enquiry based on the detention was subsequently held by the Sales Tax Officer (Enquiry) Palakkad, who by his proceedings Ext. P-2 accepted the explanation of the petitioner for the alleged defect in documents and held that there was no attempt at evasion of tax. He therefore passed the order Ext. P-2 on 30th April 1993 directing the amount of Rs. 73,995 to be refunded to the petitioner. Unfortunately the refund was not made within any reasonable time. According to the petitioner the third respondent called the petitioner to his office for collecting the refund voucher. Petitioner accordingly appeared in the office on 11th November 1993 when he signed the treasury chalan for having received the amount. But the refund order was not given: the third respondent undertaking to send the refund order by post. This was despite the fact that the petitioner had identified himself before the third respondent by producing the driving licence. The petitioner did not receive the refund order whereupon he issued a notice Ext. P-3 on 22nd November 1993 calling upon the respondents to refund the amount forthwith with interest at 18 per cent per annum from the date of deposit namely 5th November 1991. The petitioner thereafter received a letter from the third respondent dated 15th November 1993 informing him that as the amount due for refund exceeded Rs. 25,000 prior clearance and sanction was required from the Finance Department (Ways and Means II). A copy of the request made by the third respondent to the Inspecting Assistant Commissioner for obtaining such sanction was also enclosed. Since the refund order was still not received this writ petition was filed on 17th December 1993 for direction to the respondents to refund the amount.

(3.) The statement filed on behalf of the respondents states that the assessing authority received the files on 15th October 1993, that he traced out the payment chalan and prepared the refund voucher on 11th November 1993. But the refund voucher could not be issued to the petitioner since formal sanction from the Finance Department had to be obtained for which purpose he has addressed the Inspecting Assistant Commissioner on 15th November 1993 requesting him to obtain the necessary clearance from the Finance Department. The assessing authority therefore denies any laches on his part in making the refund. What the petitioner claims is a direction for refund together with interest at 18 per cent per annum. The amount was paid on 5th November 1991. The enquiry was completed and the direction for refund was made on 30th April 1993. The amount remained unrefunded despite the direction for refund and it is therefore that the petitioner filed this writ petition for directing refund. Petitioner also claims interest.