Rs 750-cr VAT refund will be cleared in 4 months: State to HC

Saurabh Malik

Tribune News Service

Chandigarh, September 17

The State of Punjab has assured the Punjab and Haryana High Court that a Rs-750 cr refund to the assessees under the Punjab Value Added Tax Act, 2005, was expected to be cleared within the next four months.

Appearing before the Bench of Justice Rajesh Bindal and Justice Amit Rawal, Punjab Financial Commissioner, Taxation, MP Singh submitted that the process of refund of excess amount paid by the assessees was streamlined, after the introduction of the GST from July 1, 2017.

He further submitted that Rs 750 crore was to be refunded to the assessees under the Punjab VAT Act; and the same was expected to be cleared within the next four months. “Wherever any interest is payable to the assessees in terms of the provisions of the VAT Act, the same shall also be paid,” he added.

The Bench was also told that necessary instructions had been issued to all Assistant Excise and Taxation Commissioners to monitor that refund applications filed earlier were disposed of first.

In default, they may initiate disciplinary action. He further assured the court that in case assessment is to be made in cases where the assessees have claimed refund of the amount deposited, the needful would be done on priority “so that the amount of refund to which the assessees may be entitled to, is granted to them”.

The developments took place on a petition filed by Saurav Udyog against the State of Punjab and other respondents.

The Bench asserted a number of petitions were being filed in the High Court wherein the assessees were praying for the issuance of a direction to the respondents to release refund of tax amount due to them.

Referring to the details of the case in hand, the Bench observed the counsel for the petitioner had stated that the amount of tax had been refunded. However, the interest payable as per the provisions of the VAT Act was still due.

“Let the amount of interest due to the petitioner be paid to him within four weeks,” the Bench ordered before disposing of the petition.