Paramjit Arora v. State Of Punjab And Another

CM-9631-CWP-2023 in CWP-37670-2019 Application moved by the applicant/petitioner under Order 22 Rule 3 of CPC for impleading the legal representatives of the petitioner - Paramjit Arora as party to the present writ petition, is allowed. Amended memo of parties is ordered to be taken on record. Main Cases 1.

"We have heard the learned counsel for the parties at some length. The question which falls for determination in these appeals is whether the appellant- dealer would be entitled to statutory interest from the date of deduction of tax in terms of Section 12(3) of the Punjab General Sales Tax Act, 1948 (for brevity 'the Act').

The matter is no longer res-integra as the similar issue involved in these petitions came up for consideration before this Division Bench in a bunch of appeals including

the case of M/s Cobra Instalaciones Y Services v. State of Punjab and others (LPA No. 740 of 2009). In the concluding paras, the Division Bench has held as under: "A perusal of Section 12(3) of the Act would show that the amount is required to be refunded and if the refund is not made within 90 days of the date of the order then the dealer is to become entitled to get simple interest on such amount at the rate of one percent per month from the date immediately following the date of expiry of the said period for a period of one month and thereafter at the rate of one and a half per centum per month till the refund is made. The amount of refund has already been disbursed. The writ petitions were filed in the year 2005 and the refund has been made by the respondents on 7.3.

2006 admittedly under Section 12 of the Act and according to the provisions of Section 12(3) of the Act the delay in refund would attract the imposition of interest as per the rates specified in Section 12(3) of the Act. Accordingly there cannot be any escape from the conclusion that interest was payable to the dealerappellant. As a sequel to the above discussion, the order dated 13.8.2008 of the learned Single Judge is supplemented and modified to the extent that interest in terms of Section 12 (3) of the Act deserves to be awarded to the appellant- dealers. The order of the learned Single Judge passed on the applications on 20.7.2009 is set aside. The respondents are directed to calculate the interest and disburse the same within a period of six weeks from the date of receipt of a certified copy of this order."

In view of the above enunciation of law, the instant appeals are also disposed of in terms of the judgement in M/s Cobra Instalaciones Y Services's case (supra)."