MEDI HERBS VELI SEMMANDALAM HOUSING BOARD Vs. COMMERCIAL TAX OFFICER CUDDALORE TOWN ASSESSMENT CIRCLE

JUDGEMENT

(1.) The petitioner herein seeks quashing of the order passed by the first respondent herein dated 22.2.2006 and to direct the first respondent to pay the interest due to the petitioner for the Assessment Years 1997-98, 1998-99 and 1999-2000.

(2.) Certain facts are not in dispute in this case. The three writ petitions relate to the assessment years 1997-98, 1998-99 and 1999-2000 respectively. The original assessment for the assessment year 1997-98 was made on the petitioner on 27.5.1999 and for the assessment years 1998-99 and 1999-2000, on 31.3.2000. As against the assets, the petitioner filed appeals before the Appellate Assistant Commissioner. The appellate authority passed the order on 7.4.2000 for the Assessment year 1997-98 and on 14.8.2001, for the Assessment years 1998-99 and 1999-2000 respectively. While rejecting the appeals, the appellate authority, however, directed assessment on the turnover relating to herbal shikakai powder as assessable at 11%. Consequent on the appellate order refixing the rate of tax as 11%, in respect of the assessment year 1997-98, 1998-99 and 1999-2000, the assessing authority passed consequential orders under Section 39-A of the Tamil Nadu General Sales Tax Act, 1959 on 28.6.2000 for the assessment year 1997-98 and in respect of 1998-99 and 1999-2000, the order was passed on 2.7.2002. It is stated that the Revenue filed appeals before the Sales Tax Appellate Tribunal and the same was dismissed. Consequent on the rectification order passed on the application of the petitioner by the Tribunal, the petitioner claimed refund of the excess tax paid for the above-said years. In respect of all these years, the respondent received copies of the appellate orders on 28.5.2000 in respect of the assessment year 1997-98 and on 14.9.2001, for the assessment years 1998-99 and 1999-2000.

(3.) It is seen that the petitioner approached the Tamil Nadu Taxation Special Tribunal in O.P.Nos.911 to 913 of 2002 seeking direction to the Commercial Tax Officer to issue the refund voucher of the excess payment of tax collected from the petitioner under protest for the assessment years 1997-98, 1998-99 and 1999-2000 in accordance with the first appellate authority's order with interest at 12% per annum as per Section 24(4) of the Tamil Nadu General Sales Tax Act. Under order dated 14.11.2002, the Tamil Nadu Taxation Special Tribunal ordered the said petitions and granted interest at the rate of 1/2% per month for twelve months as against the claim for 1% for twelve months on the amounts to be refunded. Aggrieved by the same, the petitioner moved this Court in W.P.Nos.7215 to 7217 of 2003. By order dated 6.1.2006, the writ petitions were disposed of, setting aside the order of the Tamil Nadu Taxation Special Tribunal, directing payment of interest at 1% as against 1/2% granted, holding that the assessee could approach the Assessing Officer for payment of interest as contemplated under the Rules, and on such application made, the Assessing Authority was directed to dispose of the same within a period of four weeks from the date of receipt of the order copy. Accordingly, the petitioner made his application, placing reliance on Section 24(4) of the Tamil Nadu General Sales Tax Act, 1959 read with Rule 32(2) of the Tamil Nadu General Sales Tax Rules, 1959.