Gauhati High Court
Page No.# 1/5 vs The State Of Assam And 3 Ors on 5 June, 2025
Page No.# 1/5
GAHC010004432024
2025:GAU-AS:7391
THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : WP(C)/92/2024
INDIAN OIL CORP LTD (MARKETING DIVISION)
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
Page No.# 2/5
KAR BHAVAN
DISPUR
GUWAHATI-06
------------
Advocate for : DR. ASHOK SARAF
Advocate for : SC
FINANCE AND TAXATION appearing for THE STATE OF ASSAM AND 3 ORS
BEFORE
HONOURABLE MR. JUSTICE ARUN DEV CHOUDHURY
ORDER
Date : 05.06.2025
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.
Page No.# 3/5
(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 Page No.
3/3 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
Page No.# 4/5
leviable.
5. Dr. Saraf, learned senior counsel for the petitioner
contends that similar dispute has already been set to rest by this
court under its judgment and order (CAV) dated 19.06.2024,
passed in WP(C) No.1732/2020 (Indian Oil Corporation Ltd
(Marketing Division) Vs. The State of Assam and 3 Ors.).
According to him, at paragraph No.22, and it was laid down that
the Assessing Officer and the Appellate Authority could not have
made the assessment for payment of interest and passed the
order in derogation of determination made by the Division Bench
in writ petitions being WP(C) No.1279/2008, WP(C)
No.1278/2008, WP(C) No.1282/2008, WP(C) No.1283/2008 and
WP(C) No.1305/2008.
6. Accordingly, it is contended by Dr. Saraf, learned senior
counsel that the present litigation is covered by the determination
made in the aforesaid judgment and order (CAV) dated
19.06.2024, to which Mr. B Chowdhury, learned counsel for the
respondents, on instructions from the Department also
concedes.
7. Accordingly, the writ petition stands allowed by setting
aside the impugned order dated 08.11.2023 passed by the
Assistant Commissioner of Taxes, Guwahati Unit-A for the
assessment year 1996-97, rejecting the refund application of the
petitioner.
8. At this stage, Dr. Saraf, learned senior counsel submits
that the refund application of the petitioner are still under
Page No.# 5/5
consideration and not finalized, to which Mr. Chowdhury submits
that the entire process of refund may take another six months.
9. Accordingly, as agreed, it is provided that the refund
process be initiated at the earliest and be completed within a
period of 6 months from the date of receipt of a certified copy of
this order along with a copy of the judgment and order (CAV)
dated 19.06.2024, passed in WP(C) No.1732/2020 (Indian Oil
Corporation Ltd. (Marketing Division) Vs. The State of Assam
and 3 Ors.) and the present order passed.
JUDGE
Comparing Assistant
