Delhi HC Directs VAT Commissioner To Look Into Tax-Refund Issue [Read Judgment]

The Delhi High Court has directed VAT Commissioner, New Delhi, to look into the issue of withholding refund to registered dealers and take necessary steps for rectification of the lapses.

This order by First Bench comprising Chief Justice G. Rohini and Justice Jayant Nath is on a writ petition preferred by Taxation Bar Association, a registered association of tax legal practitioners. The association contended that not only were the respondents illegally withholding the refunds due to the dealers, but the interest payable under the DVAT Act has also not been paid where the refunds are made beyond the period provided under Section 38 of the DVAT Act, thus, compelling the dealers to take recourse to legal remedies for recovery of the amount to which they are entitled to.

The court observed that the association had filed a PIL which was dismissed. However, the following order was passed by the High Court: “We are of the view that the interest of justice would be met if respondent No.2/ Commissioner of VAT, New Delhi is directed to look into the issue and take the necessary steps for rectification of the lapses, if any, in implementation of the statutory provisions. We, accordingly, dispose of the writ petition with a direction to respondent No.2 to consider the issues raised in this writ petition by treating the same as a representation. The petitioner association is at liberty to make a representation before respondent No.2 within two weeks from today, furnishing a list of specific instances where the refund is withheld. On receipt of the same, respondent No.2, after making the necessary enquiry into the allegations made in the writ petition, shall pass an appropriate order in accordance with law within eight weeks and communicate the same to the petitioner association.”

Read the Judgment here.