As a relief to Mount Everest Breweries, the Madhya Pradesh High Court (HC) has directed to refund pre-deposit with 6 % Interest since Special Leave Petition (SLP) was dismissed.
The petitioner filed a petition under Article 226 of the Constitution of India, seeking to issue an order or direction in nature of mandamus or any other suitable writ or direct the Respondents to issue a full refund of Rs. 1,10,29,179/along with interest.
The petitioner submitted that earlier the petitioner had filed a petition bearing W.P. No. 8560/2016 seeking the quashing of the assessment order issued by the respondents for the assessment year 2012-13 for arbitrary levy of tax on beer under residual entry under the VAT ACT, 2002 (VAT ACT) at the rate of 13%. The writ petition was decided in favour of the petitioner vide order dated 26.08.2016 and the assessment order was quashed.
Aggrieved by the order, the respondent/State challenged the order dated 26.08.2016 in SLP No. 2895/2017 before the Apex Court. The Apex Court vide order was pleased to uphold the order passed by the Court. The petitioner send many reminders to the respondent requesting them to refund the amount which was collected from the petitioner but the respondent failed to refund.
It was submitted that despite the order dated 26.08.2016 passed by the Court as well as the order dated 17.04.2017 passed by the Apex Court, withholding of the amount by the respondents since 2016 is arbitrary and illegal. Further prayed to direct the respondents to refund the same forthwith along with interest.
On the other hand, the respondent/State has not denied the contentions of the petitioner. However, it was submitted that the petitioner is not entitled to interest on the amount due as there is no specific provision under the VAT Act for payment of interest on a refund.
A two-member bench comprising Justice Sushrut Arvind Dharmadhikari & Justice Prakash Chandra Gupta found that the assessment order was quashed in W.P. No. 8560/2016 as also the SLP was dismissed upholding the order of the Court.
The Court observed that the respondent was obliged to refund the amount so collected to the petitioner immediately after the dismissal of SLP. Further viewed that even though, there are no provisions of payment of interest on refund of amount so collected under the VAT Act, since the SLP was dismissed on 17.04.2017, the petitioner would be eligible for interest@6% per annum w.e.f. 17.04.2017 till the date of refund. The petition got allowed.
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