THE STATE OF JHARKHAND vs M/S KIRLOSKAR BROTHERS LIMITED - 2024-01-04

O R D E R

Delay condoned .

During the course of submissions, our attention was draw n to order dated 28.11.2023 passed by a Co-ordinate Bench of thi s Court in SLP (C) Diary No. 41193/2023, which reads as under - “Delay condoned .

Having heard Mr. Arunabh Chowdhury, learned senio r counsel for the petitioner(s) in the facts and circumstances of th e case, we are not inclined to interfere with regard to the directio n issued by the High Court to refund to the respondent/caveato r herein an amount of Rs.98,17,880/-, which admittedly is th e principal amount, which has to be refunded by the petitioner(s) t o the respondent herein .

We, however, find that the High Court has further stated tha t the refund must be including interest for the period involved. But , there is no quantification of the interest .

In the circumstances, that portion of the direction wit h regard to payment of interest is set aside .

In view of the lapse of time, the aforesaid payment shall b e made by the petitioner(s) herein within a period of four weeks fro m today without seeking any extension of time either before thi s Court or before the High Court .

The Special Leave Petition is disposed of accordingly .

Pending application(s) shall stand disposed of. ”

Learned counsel for the respondent submitted that distinctio n between the aforesaid order and this case inasmuch as in this cas e there is a specific reference to Section 55 of the Jharkhand Valu e Added Tax Act, 2005 (for short the “JVAT ACT’) indicating that th e interest will have to be paid for the period commencing 90 day s after the application for refund has been made; that th e legislature has intended that refund application should be decide d within a period of 90 days, but in the instant case, th e application was kept pending for more than three years and , thereafter simply rejected the same, which rejection order has bee n set aside by the High Court and there being no merit in thi s special leave petition, the petitioners are seeking to assail th e order of the High Court. Therefore, in this case, the High Cour t having particularly referred to the payment of interest as pe r Section 55 of the JVAT Act, 6% interest may be paid from the perio d commencing 90 days after the application for refund is made .

In response to this submission, learned counsel for th e petitioner(s) submitted that firstly, having regard to aforesai d order passed by this Court on 28.11.2023, where no direction fo r payment of interest was made insofar this matter is also concerne d which is between the same parties, a consistent order may be made . Secondly, it was submitted that the respondent herein did not mak e an application for refund within 90 days from the date of deman d notice, as per Section 19 of the JVAT Act; that due t o administrative reasons there was a delay in rejection of th e application. No doubt, the rejection was ultimately challenged b y the respondent before the High court and the High Court having se t aside the order of rejection. But, interest cannot be payable fro m lapse of 90 days after making the application for refund . Therefore, it was submitted that portion of the order which refere s to Section 55 of the JVAT Act may not be given effect to in thi s case also as the respondent herein is the very sam e respondent/Assessee in SLP (C) Diary No. 41193/2023 .

Learned counsel for the respondent has brought to our notic e the fact that he has instructions to submit that there has been no n compliance of order dated 28.11.2023 by the petitioners herei n inasmuch as no payment has been received by the very sam e respondent/Assessee, although, this Court had granted four week s time from that date without seeking any extension of time eithe r before this Court or before the High Court .

We find that there has been a continuing lapse on the part o f the petitioners herein. In the circumstances, we find that th e interest of justice would be sub-served, if interest @ 6% on th e refund amount is directed to be paid w.e.f. 26.04.2023 till th e date of realisation in the instant case .

It is needless to observe that the aforesaid refun d amount with interest shall be paid within a period of four week s from today without seeking any extension of time either before thi s Court or before the High Court .

The Special Leave Petition is disposed of in the aforesai d terms having regard to the peculiar facts of this case .

Pending application(s) shall stand disposed of .

(NEETU SACHDEVA) (MALEKAR NAGARAJ )

ASTT. REGISTRAR-cum-PS COURT MASTER (NSH )