Indian Oil Corp Ltd ( Marketing Div) vs The State Of Assam And 3 Ors
2024 Latest Caselaw 304 Gua

Gauhati High Court

Indian Oil Corp Ltd ( Marketing Div) vs The State Of Assam And 3 Ors on 19 January, 2024

Author: Manish Choudhury

Bench: Manish Choudhury

                                                                  Page No. 1/3

GAHC010004432024




                      THE GAUHATI HIGH COURT
  (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                          Case No. : WP(C)/91/2024

         INDIAN OIL CORP LTD ( MARKETING DIV)
         A GOVT. OF INDIA ENTERPRISE HAVING ITS REGISTERED OFFICE
         SITUATED AT MUMBAI AND REGIONAL OFFICE SITUATED AT 2,
         GARIAHAT ROAD (SOUTH), DHAKURIA KOLKATA-700068 AND HAVING
         ONE OF ITS STATE OFFICE AS INDIAN OIL AOD STATE OFFICE, NOONMATI
         GUWAHATI. THE PETITIONER IN THE PRESENT PROCEEDINGS IS BEING
         REP. BY
         MR. A PAZHANI, DGM (FINANCE) OF THE PETITIONER COMPANY

         VERSUS

         THE STATE OF ASSAM AND 3 ORS
         REP. BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF
         ASSAM, FINANCE (TAXATION) DEPARTMENT
         DISPUR, GUWAHATI-06

         2:THE COMMISSIONER OF TAXES
         ASSAM
          KAR BHAVAN
          DISPUR
          GUWAHATI-06

         3:THE ASSISTANT COMMISSIONER OF TAXES
          GUWAHATI UNIT-A
          KAR BHAVAN
          DISPUR
          GUWAHATI-06

         4:SUPERINTENDENT OF TAXES
          GUWAHATI UNIT-A
          KAR BHAVAN
          DISPUR
          GUWAHATI-0
                                                                             Page No. 2/3

Advocate for the Petitioner   : DR. ASHOK SARAF

Advocate for the Respondent : SC, FINANCE AND TAXATION

                                    BEFORE
                   HONOURABLE MR. JUSTICE MANISH CHOUDHURY

                                         ORDER

Date : 19.01.2024.

1. Heard Dr. A. Saraf, learned Senior Counsel assisted by Mr. N.N. Dutta, learned counsel for the petitioner and Mr. B. Choudhury, learned Standing Counsel for the Finance [Taxation] Department, Government of Assam representing all the respondents.

2. Assail is made to an order dated 08.11.2023, passed by the respondent no. 3, whereby, an application submitted by the petitioner for refund of a sum of Rs. 32,37,77,568/- for the Assessment Year : 1996-97 under the Assam General Sales Tax [AGST] Act, 1993 on account of excess interest adjusted, has been disposed of with a finding that the interest levied for the Assessment Year : 1996-97 was on the delayed payment of tax due to the State as per the statutory provisions contained in the Assam General Sales Tax [AGST] Act, 1993.

3. It has been contended by the petitioner side that a Hon'ble Division Bench of this Court in its Order dated 11.03.2015 passed in W.P.[C] no. 1282/2008 [Indian Oil Corporation Ltd. (Marketing Division) -Vs- The State of Assam and Ors.] [Annexure-2] had observed that there was nil demand for the Assessment Year :

1996-97 after de-novo assessment and as such, there was no question of payment of interest against nil demand. The Special Leave Petition [Civil] Diary No[S]. 16907/2017, preferred by the State against the Order dated 11.03.2015, came to be dismissed by an Order dated 10.11.2022. By Order dated 10.11.2022, the Hon'ble Supreme Court had declined to interfere with the Order dated 11.03.2015. It was, however, clarified that, in terms of the judgment dated

27.11.2006 passed by the Hon'ble Supreme Court in Civil Appeal No. 6619 of 2001 titled "Indian Oil Corporation Ltd. Vs. State of Assam and Others" 2007 [11] SCC 693, the Indian Oil Corporation Ltd. would be liable to pay sales tax on the differential amount along with interest as per statute.

4. It has been contended that since it was observed by the Hon'ble Division Bench that since there was nil demand for the Assessment Year : 1996-97, there could not be a question of payment of interest for such nil demand. It has been contended that the Order dated 11.03.2015 was passed after considering the relevant provisions of the Assam General Sales Tax [AGST] Act, 1993, more particularly Section 22 thereof. As the SLP preferred against the said Order had been dismissed with no interference to the Order dated 11.03.2025, passed by the Hon'ble Division Bench of this Court, the respondent No. 3 could not assumed any jurisdiction to reach a finding that interest is leviable.

5. Issue notice, returnable in four weeks.

6. As Mr. B. Choudhury, learned Standing Counsel for the Finance [Taxation] Department, Government of Assam has appeared and accepted notice on behalf of all the respondents, no formal notice need be issued to the said respondents. However, extra copies be furnished to Mr. Choudhury, learned Standing Counsel within 3 [three] working days from today.

JUDGE

Comparing Assistant