D B GATTANI Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioner is an Assessee for Commercial Taxes under the Rajasthan Sales Tax Act, 1954 (in short hereinafter referred to as the Act ). By order dated 21. 3. 1994, the Assistant Commercial Taxes Officer (Anti-evasion), Udaipur has directed refund of Rs. 1,54,086. 00/ -. THEreafter, the petitioner moved an application under Section 17 of the Act for interest under Section 23 (2) of the Act. the Petitioner's application was decided by order dated 13. 7. 94 and the petitioner was given interest @ 12% per annum from 9. 8. 90 to 31. 3. 92 and thereafter @ 15% from 1. 4. 92. It has also been held that the interest shall be calculated only if the amount is in deposited for a period of one year.

(2.) IT is the case of the petitioner that he has been granted the interest from 9. 8. 90 on the basis of the Circular No. 868-A : CIT/circular F. 120 (M) Tax/cct, dated 4. 2. 92 (Annexure 3), and Circular No. 850-E : Circular F. 120 (Misc.) Tax/cct/refund 91,500, dated 30. 4. 91 (Annexure 4 ). The Circulars are not in conformity with the provisions of the Act and particularly, Section 23 (2) of the Act, thus, cannot be given effect to. The grant of interest from 9. 8. 90 is contrary to the provisions of Section 23 (2) of the Act and petitioner is entitled for the interest from the date of the deposit till the refund. The petitioner has prayed for quashing of the two circulars i. e. Annexures 3 and 4, issued by the Commissioner, Commercial Taxes Department and order dated 13. 7. 94 (Annexure 2) passed by Commercial Taxes Officer (Anti-evasion), Commercial Taxes Department, Udaipur.

(3.) ON plain reading of sub-section (2) of Section 23, is manifest that the interest shall be paid from the date of the deposit of the amount till it is refunded and a rate of interest shall be calculated on the deposit at the rate of 12% or 15%, as the case may be irrespective of the period for which the amount remains in deposit.