Under Section 39(5) of the Chhattisgarh Value Added Tax Act, 2005, an assessee is entitled to statutory interest @ 0.5% per month on excess tax recovered if the refund is not paid within the stipulated time following a valid claim.

Order on Board

1. The petitioner has filed this petition seeking the following reliefs:

“a. That this Hon'ble Court may kindly be pleased to call the entire records pertaining to the case of the Petitioner from the concerned department of the Respondent herein.

b. That this Hon'ble Court may kindly be pleased to issue an appropriate Writ or order directing the Respondent department to sanction the refund whereby the claim of petitioner has not been acknowledged by the Respondent Authorities along with interest at such rate as may be deemed fit by this Hon'ble High Court.

C. That the Hon'ble Court may kindly be pleased to direct the concerned department of the Respondents herein to consider the claim of Petitioner as a bonafide assessee and the plea for refund of excess amount recovered by the authorities.

d. The Hon'ble Court may further be pleased to pass any other order in favour of petitioner as it may deems fit and proper under the facts and circumstances of the case along- with cost.”

2. The facts, in brief, are that the petitioner is engaged in the business of manufacturing and trading of Plywood, Block Board, Flush Door, Commercial Veneer and Laminates and is registered under the GST. The Assessing Officer vide assessment order dated 30.5.2022 raised a tax demand to the tune of Rs.58,55,865/- (VAT) and Rs,3,45,479/- (Entry Tax) for the quarter ending of 30.6.2017. The said demand was directly sent to the banker of the petitioner and was deducted from the bank account of the petitioner on 27.3.2021. The petitioner thereafter approached the authorities under Form-18 for reassessment and an order was passed by the Assistant Commissioner, Commercial Tax, Raipur on 18.6.2024 whereby the entry tax as well as the VAT assessed by the Assessing Authority were revised and reduced to the figure of Rs.68,799/- (VAT) and Rs.70,464/- (Entry Tax), respectively.

As an amount of Rs.62,01,344/- was already recovered from the bank account of the petitioner and after adjusting actual revised tax Rs.1,39,263/- the petitioner was entitled for refund of Rs.60,62,081/-. Accordingly, a representation was made before respondent No.2 on 15.3.2025, which was received by the authority concerned on 20.3.2025 and a reminder was sent on 28.3.2025. Since no action was taken, the present writ petition was filed on 29.4.2025. Thereafter, the respondent authorities credited the amount of Rs.60,62,081/- in the bank account of the petitioner on 31.10.2025.

3. Learned counsel for the petitioner would submit that reassessment order was passed by the Assistant Commissioner, Commercial Tax, Raipur on 18.6.2024 and thus, the petitioner became eligible and entitled to receive the refund on said date but the amount was credited in the bank account of the petitioner after more than one year i.e. on 31.10.2025, therefore, the petitioner is entitled to get statutory interest @0.5% per month on said amount. He would pray to allow this petition.

4. On the other hand, learned counsel for the State would oppose the submissions made by counsel for the petitioner. She would submit that after the reassessment order, the petitioner should have moved an application according to the provisions of Section 56 of the Chhattisgarh Value Added Tax Act, 2005 (for short Act, 2005) before the Competent Authority but no such steps were taken. She would contend that on 15.3.2025 the representation was not made before the appropriate authority for refund of the excess amount. She would submit t