The division bench of Delhi High Court in a recent case expressed its concern over the acts of the DT & T Officers that they are passing orders without application of mind due to which the Government suffers a burden of nearly Rs. 56 Lakhs by paying as interest.
The division bench comprising of Justices S. Muralidhar and Nazmi Waziri further opined that there is an urgent need for an orientation being imparted to the officers of the DT&T in the law and the decisions of the Court explaining the law.
The Court was considering a Writ Petition seeking for payment of refund of tax entitled to the assessee under the provisions of Delhi Value Added Tax Act. The Petitioner claimed that the time limit in terms of Section 38(3) (a) (i) commenced from 27th March 2008. In terms of Section 42(1) DVAT Act, the interest on the refund due also started accruing from that date. According to the Petitioner, as of 31st May 2016 the interest worked out at 6% on the refund due worked out to Rs. 50,12,356.
The Court accepted the submissions of the Petitioner. While directing the Department to pay the refund amount due to the petitioner, the Court observed that “Before parting with the matter, the Court would like to add that this is yet another instance of orders being passed by the officers of the DT&T with total non-application of mind and in ignorance of the legal position. The Court would only like to reiterate that there is an urgent need for an orientation being imparted to the officers of the DT&T in the law and the decisions of the Court explaining the law.”
The division bench further added that “Due to the careless action of the VATO in the present matter, who issued the issued the ‘adjustment order’ dated 30th December 2010 unmindful of the law, an interest burden of nearly Rs. 56 lakhs is now placed on the exchequer. A question then arises as to who should be made responsible for this and whether any action on the disciplinary side is not called for?Consequently, the Commissioner, VAT is directed to seek an explanation from the VATO who issued the above ‘adjustment order’ and to pass appropriate orders on the disciplinary side as he deems fit not later than four weeks from today. A copy of this order be delivered forthwith to the Commissioner, VAT by the Registry through a Special Messenger for compliance with the above direction.”
Read the full text of the order below.
