IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 1103 of 2006(F)
1. N.KRISHNAN, NAVABHARATH CASHEW TRADERS,
... Petitioner
Vs
1. THE COMMISSIONER OF COMMERCIAL TAXES,
... Respondent
2. THE SALES TAX OFFICER,
For Petitioner :SRI.S.SANTHOSH KUMAR
For Respondent : No Appearance
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :21/11/2008
O R D E R
C.N.RAMACHANDRAN NAIR, J.
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W.P.(C) No.1103 of 2006
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Dated this the 21st day of November, 2008.
JUDGMENT
The W.P. is filed for direction to the second respondent to grant
refund of security released in adjudication proceedings. Security was
furnished for release of goods and in adjudication, part of the security
amount was released. According to the petitioner, inspite of repeated
demand, security was not released. However, Ext.P8 shows that security
was adjusted against demand for 2001-2002 sometime in 2005. Petitioner’s
case is that interest is not credited to the security amount. Counsel has
relied on decision of this court in M/S.SHYAM ELECTRICALS V. STATE
OF KERALA (1994 K.L.J. (TAX CASES) 233) whereunder this court
ordered payment of interest at the rate of 15% p.a. for inordinate delay in
refund of security. Even though I feel this court has no authority to fix
interest payable on refunds in excess of statutory limit, I feel in this case on
equitable consideration the petitioner is entitled to interest at the rate of
15% p.a. because rate of default interest charged on outstanding liability is
1% per month for first three months and 2% per month thereafter. It is not
known whether interest under Section 23(3) is charged on default amount at
2
the time of adjustment. If interest is charged for outstanding liability, then
there will be direction to the respondents to credit interest on the refund
amount at the rate of 15% p.a. for period after expiry of three months from
date of order of refund and grant eligible refund, if any, due to the
petitioner within two months from date of production of copy of this
judgment. If there is any outstanding liability still due from the petitioner,
the refund amount due will be adjusted against such dues.
W.P.(C) is disposed of as above.
C.N.RAMACHANDRAN NAIR
Judge
pms