JUDGMENT :

SONIA GOKANI, J.

1. The challenge here is to the order dated 18.10.2017 passed by the respondent No.3 granting refund of only principal amount of Rs.1,86,34,083/- (Rupees One Crore Eighty-six Lakh Thirty-four Thousand Eighty-three Only) without interest for the period spanning 2004 till the date to the petitioner under Section 54 of the Gujarat Sales Tax Act, 1969 (‘the GST Act’ hereinafter) alleging the same to be illegal and contrary to law.

2. This Court issued the notice to the respondent on 10.11.2022 by a following order:

“1. By way of the present petition under Article 226 of the Constitution of India, challenges the order passed by the respondents granting refund of only principal amount without interest, which according to the petitioner is contrary to law.

The prayer sought for, is as follows:

“7. The petitioner, therefore, prays that this Hon’ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, direction or order and be pleased to :

(a) command the Respondent/s to pay interest to the petitioner at 6% p.a. on Rs.1,79,08,867/- from 1.4.2005 on Rs.7,25,216/- from 24.01.2008 till the date of actual refund on the total amount of Rs.1,86,34,083/-; and/or

(b) any other and further relief deemed just and proper be granted in the interest of justice;

(c) to provide for the cost of this petition.”

2. We have heard learned Senior Advocate Mr.S.P.Soparkar assisted by Mr.Monaal Davawala, learned Advocate for the petitioner, who has drawn the attention of this court to decision rendered in the case of very petitioner in Special Civil Application No.18379 of 2018 for the Assessment Year 1997-98, wherein the respondents have been directed to pay the interest at the rate of 6% per annum till the date of actual refund on the principal amount. It is also noted that in Special Leave Petition (Diary) No.19516 of 2020, no stay has been granted by the Hon’ble Supreme Court, however the matter has been tagged with the other matters.

3. Notice for final disposal returnable on 01/12/2022. Learned AGP Ms.Pooja Ashar waives service of notice for respondent Nos.1 to 3. She drawn attention of the court to the fact that in Special Leave to Appeal No.30627 to 30629 of 2019, the court has granted the stay until further orders and the matter has been tagged with Special Leave Petition No.16117 of 2016 and Special Leave Petition (Diary) No.19516 of 2020 has also been tagged with the same on 22/01/2021.”

3. Affidavit-in-reply is not filed on the ground that the matter is already covered by the decision of this very court. The point which is required to be considered is as to whether the respondent is required to be directed to pay the interest from 01.04.2005 till the date of actual refund on the total amount.

4. We have heard extensively the learned senior advocate, Mr.Soparkar assisted by the learned advocate, Mr.Moonal Davawala and learned AGP, Ms.Pooja Ashar.

5. The brief facts which are needed to be considered are as follow:

5.1 The petitioner is engaged in the business of manufacturing and selling paints, varnishes, thinners, chemicals, etc. During the assessment for Financial Year 2003-2004, the purchase tax was levied by the respondent authorities on tax free goods, fuel, packing material, etc. and the higher taxes on the red oxide. The order of assessment was passed by the Assessing Authority on 08.01.2008 and demand raised was of Rs.36,26,080/- (Rupees Thirty-six Lakh Twenty-six Thousand Eighty Only) for the Financial Year 2003-2004 and the petitioner paid Rs.7,25,216/- (Rupees Sven Lakh Twenty Five Thousand Two Hundred Sixteen Only) on 24.01.2008. Thus, the entire demand had been completed on 24.01.2008 and thereafter, the petitioner filed an appeal against the Assessment Order.

5.2 The order in appeal was passed on 11.09.2017 granting relief to the petitioner for the refund for the sum of Rs.1,86,34,083/- (Rupees One Cro