The Himachal Pradesh High Court has removed the order of Excise and Taxation commissioner disallowing the portion of GST ITC and rendered the refund of the balance ITC with 6% interest.
The applicant is the owner of Pooja Cotspin Limited is an enrolled dealer beneath the Himachal Pradesh value-added tax, 2005. The assessing authority assessed the applicant for the year 2010-11 beneath the VAT act and indeed the Central Sales Tax Act, 1956.
In the assessment order, a total sum of Rs 1,31,43,515 was assessed as excess ITC, from which a sum of Rs 49,27,694 was subjected to apply for the payment of the left central sales tax, and a balance of Rs 82,15,821 was assessed as excess ITC, which was ordered to be taken subsequently for the subsequent year beneath section 12(4) of the Value Added Tax (VAT) act. The applicant has urged for the refund of the input tax credit, but, he was rendered to furnish the distinct application for the refund through the assessing officer.
The applicant has submitted the requisite application for refund of an additional Input tax credit of Rs 82,15,821 towards the commissioner. The commissioner has not allowed the refund of Rs 17,06,715 to an applicant on the basis of the applicant who buys the raw material via selling dealer M/s Samana Industries ltd for Rs 14,17,05,652 in the year 2010-11 and the dealer has furnished the tax of Rs 70,85,283 on these buyings.
M/s Samana Industries ltd has availed the postponement amounting to Rs 17,06,715 on the VAT subjected to pay in the Government Treasury as M/s Samana Industries ltd. has chosen the upfront payment of the tax. Since the amount of Rs 17,06,715 would not be drawn in the Government Treasury, thus as per the commissioner that was not subjected to refund to the dealer. Hence a refund of Rs 65,09,106 was subjected to pay towards the applicant.
“The Division Bench comprising of Justice Sabina and Justice Satyen Vaidya, has held that the instant revision petition is allowed. Tribunal upholding order dated passed by the Excise & Taxation Commissioner, Himachal Pradesh is set-aside. Petitioner is held entitled to refund of balance Input Tax Credit to the tune of Rs.17,06,715/-. Since the petitioner remained divested from the substantial amount of his business money without his fault, he is held entitled to payment of interest from Respondent No.1 at 6% per annum on the amount of Rs.17,06,715/- from the date it fell due till the date of actual payment”.
