NATIONAL FERTILIZERS LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioner-company is a Government of India undertaking and is carrying on its business of fertilizers in whole of the country including the State of Punjab. It is a dealer registered under the Punjab General Sales Tax Act, 1948 (for short "the Punjab Act" ). For the assessment year 1979-80 the Assessing Authority assessed it for tax amounting to Rs. 4,52,027. The petitioner filed an appeal against the order of assessment and also applied for exemption from payment of tax. This request was turned down by the appellate authority. When further appeal was taken to the Sales Tax Tribunal, the latter passed an order dated December 4, 1985, annexure P1 and directed the petitioner to deposit a total sum of Rs. 4,00,000 with reference to the two cases. A direction was given to the appellate authority to hear and decide the appeals on payment of Rs. 4,00,000 by the petitioner-firm. In pursuance of this direction, the petitioner deposited Rs. 4,00,000 vide cheque dated February 12, 1986, which was encashed by the respondents on February 20, 1986. passed by the Assessing Authority was quashed by the Deputy Excise and Taxation Commissioner (Appeals), Ferozepore Division, who remanded the case to the Assessing Authority vide order dated May 22, 1986. This remand order was also set aside by the Sales Tax Tribunal, Punjab, vide order dated December 11, 1986, annexure P4.

(2.) IMMEDIATELY after the passing of order dated May 22, 1986, by the appellate authority, the petitioner made an application for refund of the amount deposited by it in pursuance of the earlier direction given by the Tribunal. After acceptance of the appeal by the Tribunal vide order dated December 11, 1986 (annexure P4), the petitioner once again submitted an application dated February 17, 1987, for the refund of the amount deposited by it. However, refund of the tax deposited by the petitioner was delayed for about five years. Payment was made to the petitioner on September 15, 1992 (Rs. 2,00,000) and October 23, 1992 (Rs. 2,00,000 ). On account of delaying the refund of the amount, the petitioner claimed interest and for that purpose it made representations annexures P9 and P10. Having failed to persuade the departmental authorities to make payment of interest in terms of section 12 (3) of the Punjab Act read with rule 50 of the Punjab General Sales Tax Rules, 1949 (for short "the 1949 Rules"), the petitioner has filed this writ petition under article 226 of the Constitution and sought a writ of mandamus against the respondents for payment of interest on the amount of refund which was withheld by the respondents for a period of about 5 years. Notice of this petition was given to the respondents on April 28, 1994. No reply has been filed by the respondents. In our opinion, in the face of the clear averments made in the writ petition and the various documents which have been placed on record, a factual reply is not even necessary.

(3.) THE above quoted provisions clearly show that if the amount required to be refunded by the Assessing Authority is not so refunded to him within 90 days of the date of order, the dealer becomes entitled to get interest specified in that section and it is the duty of the authority refunding the amount to indicate the amount of interest payable to the dealer. Failure of the respondents to refund the amount despite the quashing of the order of assessment is without any reason or rhyme. In its order dated December 11, 1986, the Tribunal had clearly observed that consequential reliefs, if any, may be allowed to the appellant dealer. As early as on February 17, 1987, the petitioner had made an application to the Excise and Taxation Commissioner, Bhatinda, to refund the amount of tax deposited by it.