Revenue Department has no power to re-adjudicate or re-quantify Refund Order

The Hon’ble Madras High Court in the case of GET and D India Limited v. Deputy Commissioner (ST) [W.P. No. 2460 & 3674 of 2023 dated November 16, 2023] directed the Revenue Department to refund the amount of tax as per refund order thereby holding that, the Notice cannot be issued when the excess tax amount has already been assessed and Revenue Department has passed the Refund Order. Also, the Revenue Department is not empowered to re-adjudicate or re-quantify while passing the Refund Order. Therefore, the Petitioner is entitled for the refund.

Facts:

M/s. GET and D India Limited(“the Petitioner”) has filed a Writ Petition to quash the notice dated January 24, 2023 (“the Impugned Notice”) and directing the Revenue Department (“the Respondent”) to refund the excess tax amount, along with interest, under Section 42(5) of the Tamil Nadu Value Added Tax Act, 2006 as per assessment and refund order dated September 22, 2022 (“the Refund Order”).

Issue:

Whether the Revenue Department has the power to re-adjudicate or re-quantify Refund Order? 

Held:

The Hon’ble Madras High Court in the case of W.P. No. 2460 & 3674 of 2023 held as under:

• Noted that, the Refund Order was passed wherein the amount of excess tax with the Respondent was determined. Pursuant to the Refund Order passed, the Petitioner filed a refund application. The Respondent, after passing the Refund Order and filing the Refund Application, once again issued the Impugned Notice to the Petitioner and called for the particulars, as if to revise its order.
• Opined that, the Impugned Notice cannot be issued when the excess tax amount has already been assessed and the Respondent has passed the Refund Order. Also, the Respondent is not empowered to re-adjudicate or re-quantify while passing the Refund Order. Therefore, the Petitioner is entitled for the refund.
• Held that, the Writ Petition is allowed.
• Directed that, the Respondent should refund the amount as per the Refund Order along with interest. In case of non-compliance of the Order of the Court, the Respondent authorities shall before the Court.

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