MARDIA CHEMICALS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner has challenged a communication dated 15.1.2001 and further prayed for a direction for refund of the sum of Rs.3,69,157/- with interest from 1.2.1999 till actual payment.

(2.) BRIEF facts are as under.

(3.) ON the basis of the above documents on record, counsel for the petitioner contended that the respondents gravely erred in rejecting the claim of the petitioner. He submitted that when the petitioner made application for refund, it was the first circular dated 6.8.1998 which held the field. In such circular, the case of the petitioner was covered. Any latter amendment in the instructions issued by the C.B.D.T. cannot be the ground for declining the claim of the petitioner. In other words, the contention of the counsel was that the case of the petitioner should be decided on the basis of the first circular dated 6.8.1998 and not under any subsequent circulars which may have been issued after the petitioner made the application for refund. Counsel further submitted that the respondents did not reply to the petitioner's application for a long time. It was not open for the respondents to sit tight over the petitioner's refund claim and thereafter deny the same on the ground that by virtue of subsequent circular, the petitioner was not entitled to such refund.