Interest of Refund Calculated under TNVAT Act instead of TN General Sales Tax Act: Madras HC directs to Dispose Representation within 6 weeks [Read Order]

In a recent ruling, the Madras High Court has directed the Assistant Commissioner (ST) to dispose of the representation within 6 weeks in relation to matters where interest of refund is calculated under Tamil Nadu Value Added Tax Act ( TNVAT ), 2006 instead of Tamil Nadu General Sales Tax Act, 1959.

The petitioner, Syngenta Crop Protection Pvt. Ltd had filed a writ petition challenging an order dated 09.04.2019 and seeking a direction for the payment of interest at 12% per annum on the sum of Rs.6,45,39,516/- pertaining to assessment years 1996-97 to 2000-2001.The writ petition was granted on 06.07.2022, ordering the payment of interest.

However, the petitioner contested an intimation dated 25.01.2023 on two grounds. Firstly, the interest was calculated based on the Tamil Nadu Value Added Tax Act, rather than the prescribed rate in the Tamil Nadu General Sales Tax Act. Secondly, the computation of interest began from 13.10.2014, whereas the petitioner argued it should commence from 29.10.2004.

The  Senior counsel for the petitioner submitted that interest was calculated in the intimation as per the interest rate prescribed in the Tamil Nadu Value Added Tax Act instead of applying the interest rate prescribed in the Tamil Nadu General Sales Tax Act,.

The second ground on which the intimation is challenged is that interest was computed with effect from 13.10.2014, whereas the petitioner contends that interest should be paid from 29.10.2004

The counsel also pointed out that a representation dated 13.02.2023 was submitted to the Assistant Commissioner with regard to the above grievances and that such representation has not been disposed of until date.

C.Harsha Raj, Additional Government Pleader, accepted notice for the respondent. He submitted that the petitioner's representation would be considered and disposed of within six weeks.

Consequently, in light of the submission of the respondents, the court disposed of the case by directing the respondent to consider and resolve the representation dated 13.02.2023 within six weeks by providing the petitioner with a reasonable opportunity for a personal hearing.

To Read the full text of the Order CLICK HERE

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