- Vide decision of High Court of Gujarat in Udaipur Cement Works Ltd. vs. State of Gujarat.
Facts of the case:
- Assessee was engaged in manufacture and sale of cement.
- It was registered under Central Sales Tax Act, 1956 in State of Rajasthan.
- Competent Authority of State of Rajasthan wrongly refused to issue Form 'C' to assessee for purchase of diesel at concessional rate of 2 per cent.
- Thereupon seller, who was located in State of Gujarat, started raising invoice on assessee charging full tax at rate of 20 per cent on sales of diesel.
- Such tax was deposited by seller with department of Central Sales Tax in Gujarat.
- Rajasthan High Court, on writ petition filed by assessee, directed Competent Authority of State of Rajasthan to issue Form 'C' to assessee in respect of transactions in question and also held that if in case assessee had to pay any amount on account of wrongful refusal to issue Form 'C' then assessee was entitled to refund from concerned authority who collected excess tax.
- After passing of such order, Competent Authority of State of Rajasthan started issuing Form 'C' to assessee.
- However, issue regarding refund of excess tax collected from assessee and deposited during interregnum period still survived.
- Assessee on basis of aforesaid judgment of Rajasthan High Court requested concerned authority of State of Gujarat for refund of excess tax collected from it and deposited by seller with department in accordance with directions given by Rajasthan High Court.
Concerned authority of State of Gujarat refused to refund tax amount on ground that such refund could be made to seller of diesel after its assessment for period in question was concluded and not to assessee, who was not registered dealer in State of Gujarat.
- Assessee filed writ petition in Gujarat High Court seeking directions to concerned authority of State of Gujarat to grant refund of excess tax amount collected from it and deposited by seller with appropriate interest on such refund amount.
Judgement:
The honorable high Court of Gujarat held the case as follows:
Whether in view of judgment of Gujarat High Court rendered in case of J.K. Cement Ltd. v. State of Gujarat concerned authority of State of Gujarat was to be directed to process refund claim of assessee and grant refund of excess tax amount collected from it and deposited by seller in accordance with law.