PANAJI
In a setback to the Goa government, the High Court of Bombay at Goa on Friday quashed and set aside an amendment in Goa Goods and Services Tax Act while issuing directions to the State to deposit the amount collected from three companies within four weeks with interest.
With this order, the Bench disposed of petitions filed by Synergy Trade Exchange, United Spirits Ltd and Global Conveyor Systems Pvt Ltd.
In the leading petition of Synergy Trade Exchange, the High Court observed that the Assessing Officer assessed the petitioner’s returns for 2011-12 and through its order dated December 10, 2014, determined an amount of Rs 3,08,24,730 as refundable to the petitioner. This was the excess tax paid for that financial year.
“By an order dated December 6, 2017, the Commissioner of Commercial Taxes sanctioned a refund of Rs 2,49,05,784 and this amount was actually refunded on December 14, 2017. However, no statutorily prescribed interest at the rate of 8 percent per annum was paid to the Petitioner. Then the petitioner approached High Court and a mandamus was issued directing the respondent’s government authorities to pay an amount of Rs 54,62,665 together with interest at the rate of 4 percent per annum,” the copy reads.
It stated that the amount has to be computed from December 14, 2017 till the date of actual payment within eight weeks. The government thereafter amended the Act and refused to pay back the amount.
In its order, the High Court observed that the amendment is “impermissible judicial override defying the doctrine of separation of powers”.
