AND SUDDALA CHALAPATHI RAO W.P.No.28634 OF 2023 ORDER : (per Hon’ble Sri Justice P. Sam Koshy)

Heard Mr. K.Rajasekhar, learned counsel representing Mr. M.V.J.K.Kumar, learned counsel for the petitioner and Mr. T. Chaitanya Kiran, learned Assistant Government Pleader representing the learned Special Government Pleader for State Tax for the respondents. Perused the record.

2. The limited relief that the petitioner has sought for in the instant case is for an appropriate direction to the respondent- department to refund the amount payable to the petitioner amounting to Rs.6,84,781/- which the petitioner was held to be entitled for in the year 2022. Since then, the petitioner has been repeatedly making reminders and representations to the department which till date have not been either processed or finalized.

3. Yesterday, when the matter was taken up for hearing, the learned Special Government Pleader for the State Tax had requested the matter to be taken up today ensuring that positive instructions would be obtained from the department as to within how much time the amount be refunded to the petitioner could be released.

4. Today, the learned Special Government Pleader for the State Tax along with Mr. G.Narender Reddy, 3^rd respondent/Assistant Commissioner (CT) appeared before the Court and made a statement that if the writ petition could be disposed of, the State Government shall ensure that the amount payable to the petitioner shall be refunded within an outer limit of 45 days.

5. Though there does not seem to be any plausible and justifiable explanation provided by the respondents as to why the refund claim of the petitioner could not be processed till now, in spite of the matter pending before the authorities for more than couple of years, we are deliberately ignoring to pass any adverse order against the State. Nonetheless, we categorically hold that the entire amount refundable to the petitioner shall be paid along with the interest that accrues on the said amount in terms of the Section 38(6) of the Value Added Tax Act. We also make it clear that in case if the said amount is not paid within the period of 45 days, the petitioner shall be entitled for additional interest at 18 % p.a., for the further period for which the amount is held back by the department. We also make it clear that in such a situation, the respondents would be at liberty to recover the interest amount from the erring officials who have not processed the claim within time and released the amount payable to the petitioner leading to the loss to the State exchequer.

6. The writ petition, accordingly, stands allowed and disposed of. There shall be no order as to costs.

Consequently, miscellaneous petitions pending, if any, shall stand closed.

P.SAM KOSHY, J SUDDALA CHALAPATHI RAO, J

14.08.2025

Lrkm/Adt