Asian Paints Limited VS State Of Gujarat

The petitioner challenges an order dated February 11, 2017, issued by the respondent No.3. The order grants a refund of only the principal amount of Rs.2,15,80,739/- (Rupees Two Crore Fifteen Lakh Eighty Thousand Seven Hundred Thirty-nine), without including interest. This refund is provided under Section 54 of the Gujarat Sales Tax Act, 1969. The petitioner contends that this decision is illegal and against the provisions of the law. Specifically, they argue that the refund should rightfully include interest covering the period from 2005 up to the present date.

The petitioner challenges an order dated 02.11.2017 issued by the respondent No.3 under Section 54 of the Gujarat Sales Tax Act, 1969. The order granted a refund of Rs. 2,15,80,739/- (Rupees Two Crore Fifteen Lakh Eighty Thousand Seven Hundred Thirty-nine) to the petitioner, but only the principal amount without interest for the period from 2005 onwards. The petitioner contends that this decision is illegal and contrary to the provisions of the GST Act. Through a petition under Article 226 of the Constitution of India, the petitioner seeks to challenge this order, arguing that the refund should include interest as mandated by law.

The petitioner challenges an order dated 02.11.2017 issued by respondent no. 3, which granted a refund of only the principal amount of Rs. 2,15,80,739/- under Section 54 of the Gujarat Sales Tax Act, 1969. The petitioner contends that this refund, devoid of any interest spanning from 2005 until the refund date, is unlawful and against established legal principles.

Through a petition under Article 226 of the Constitution of India, the petitioner seeks judicial review, arguing that the respondent’s decision is illegal. The relief sought includes a writ of mandamus, certiorari, or any other appropriate writ, directing the respondents to:

(a) Pay interest to the petitioner at 6% per annum on Rs. 76,00,879/- from 1.4.2005, on Rs. 34,39,839/- from 6.9.2008, and on Rs. 1,05,40,021/- from 13.7.2009 until the date of the actual refund, totaling Rs. 2,15,80,739/-.

The petitioner asserts that such interest payments are justified under the law and prays for the court’s intervention to rectify the alleged illegality in the refund order.

The petitioner challenges an order dated 02.11.2017 issued by the respondent No.3 under Section 54 of the Gujarat Sales Tax Act, 1969. The order granted a refund of Rs.2,15,80,739/- to the petitioner, comprising only the principal amount without interest, covering the period from 2005 until the date of refund. The petitioner contends that this decision is illegal and contrary to law.

Through a petition under Article 226 of the Constitution of India, the petitioner seeks judicial intervention to rectify the alleged illegality in the refund order. Specifically, the petitioner requests the court to issue a writ of mandamus, certiorari, or any appropriate writ or direction commanding the respondents to pay interest at 6% per annum. This interest is claimed on specific amounts: Rs.76,00,879/- from 1.4.2005, Rs.34,39,839/- from 6.9.2008, and Rs.1,05,40,021/- from 13.7.2009 until the date of actual refund, totaling Rs.2,15,80,739/-.

During proceedings, Senior Advocate Mr. S.P. Soparkar, assisted by Advocate Mr. Monaal Davawala, highlighted a precedent wherein similar relief was granted to the petitioner in a prior case (Special Civil Application No. 18379 of 2018). In that instance, the court directed payment of interest at the rate of 6% per annum on the principal amount until the date of refund. It is noted that there is no stay order in effect from Special Leave Petition (Diary) No. 19516 of 2020 concerning this matter.

The petitioner challenges an order dated 02.11.2017 issued by the respondent No. 3 under Section 54 of the Gujarat Sales Tax Act, 1969. This order granted a refund of only the principal amount of Rs.2,15,80,739/- to the petitioner, omitting any interest for the period from 2005 until the date of refund. The petitioner contends that this decision is unlawful.

Through a petition under Article 226 of the Constitution of India, the petitioner seeks judicial intervention, asserting that the refusal to include interest with the refund contradicts legal principles. The prayer submitted to the court includes a request for a writ of mandamus, certiorari, or any suitable writ or order directing the respondents to pay interest at 6% per annum on specific amounts from designated dates until the actual refund is disbursed.

During the proceedings, Senior Advocate Mr. S.P. Soparkar, with assistance from Advocate Mr. Monaal Davawala, represented the petitioner. They highlighted a precedent where interest was granted in a similar case involving the petitioner. Specifically, in Special Civil Application No. 18379 of 2018 for the Assessment Year 1997-98, the court directed interest payment at 6% per annum until the refund date on the principal amount. It was noted that a Special Leave Petition (Diary) No. 19516 of 2020, related to this matter, has not been stayed by the Supreme Court but has been grouped with other cases.

Subsequently, a notice for final disposal was scheduled for 01/12/2022. Assistant Government Pleader Ms. Pooja Ashar waived notice service for respondent Nos. 1 to 3. She informed the court that in Special Leave to Appeal No. 30627 to 30629 of 2019, a stay has been granted until further orders and the case has been consolidated with Special Leave Petition No. 16117 of 2016. Special Leave Petition (Diary) No. 19516 of 2020 was also linked with these matters as of 22/01/2021.

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