Page No.# 1/5 vs The State Of Assam And 3 Ors
2025 Latest Caselaw 887 Gua

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)/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
                                                                        Page No.# 2/5

             KAR BHAVAN
             DISPUR
             GUWAHATI-0

Advocate for the Petitioner : DR. ASHOK SARAF, B SARMA,MR. G. DUTTATRAY,MR P K
BORA,MR. N N DUTTA,MR P BARUAH

Advocate for the Respondent : SC, FINANCE AND TAXATION,




                                 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. 26,86,98,295/- for the Assessment Year : 1994-95 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 : 1994-95 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 Page No.# 3/5

observed that there was nil demand for the Assessment Year : 1994- 95 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,

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 : 1994-95, 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. Dr. Saraf, learned senior counsel for the petitioner contends that similar dispute has already been set to rest by this court under Page No.# 4/5

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 1994-95, 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 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 Page No.# 5/5

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