DASHMESH TRADERS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This order shall dispose of CWP No. 12544 and 14972 of 2011 as these have been filed by the same assessee and are interconnected.

(2.) Briefly, the facts may be noticed. The assessee-petitioner through CWP No. 12544 of 2011 is seeking issuance of a writ in the nature of mandamus directing the respondents to refund penalties of Rs.2,70,800/- and Rs.2,95,903/- taken as cash security for the release of goods . The order imposing the penalty was set aside by the appellate authority. The assessee was held entitled to claim of the refund along with interest. Reliance was placed upon Section 51(10) of the Punjab Value Added Tax Act, 2005 (in short "the Act").

(3.) During the pendency of the aforesaid writ petition, in the reply filed by the respondents, a copy of order dated 24.6.2011 had been appended wherein the amount was sought to be withheld by taking recourse of Section 41(1) of the Act. On the basis of the order dated 24.6.2011, the amount of refund was withheld by Annexure P-5 dated 22.7.2011. The petitioner thereafter challenged the said order dated 22.7.2011 by filing CWP No. 14972 of 2011 on the ground that the ingredients of Section 41(1) of the Act were not fulfilled.