MOHIT INDUSTRIES LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) We have heard Ms. Sangeeta Pahwa, leaned counsel for the petitioner and Ms. Manisha L. Shah, learned Government Pleader for the State respondent.

(2.) By means of this petition under Article 226 of the Constitution of India, the petitioner has prayed for quashing and setting aside order dated 18.10.2019 passed by the respondent No.2 - State Sales Tax Officer withholding the refund of Rs.15 lakhs paid as pre-deposit. Further prayer is to direct the respondents to forthwith refund the said amount along with 18% interest from the date of pre- deposit.

(3.) The brief facts of the case are that with respect to certain purchase of raw material upon payment of Gujarat Value Added Tax and despite submission of the relevant forms, the revenue did not accept the same and assessed the tax treating that once the goods travel outside the State, the tax credit has to be reduced in terms of Section 11(3)(b) of the Act. The petitioner contested the said demand up to the Tribunal which held in its favour vide order dated 13.08.2015 (Annexure-C to the petition). It would also be relevant to state here that in order to file an appeal, the petitioner had made a pre-deposit of Rs.15 lakhs under Section 73(4) of the Gujarat Value Added Tax, 2003 and the said amount is lying with the Department. After about 2 years of the judgment of the Tribunal, the State challenged the same by way of Tax Appeal Nos.730 and 731 of 2017. The High Court dismissed both the appeals vide order dated 8/9.02.2018 (Annexure-D to the petition).