East India Hotels Ltd. vs Sales Tax Officer

It is not in dispute that the petitioners are claiming the refund on the basis of the assessment orders in which they have been found entitled to refund by an appropriate authority who had passed regular orders of assessment. In this situation we are unable to appreciate what is there for further consideration when no defect in the application for refund has been pointed out. To us it appears that the respondents are activated by the consideration that the petitioners have collected sales tax from their customers and would, without refunding the same to those customers, get the amount in its pocket. Whether the petitioner refunds to its customers or not and whether those customers claim refund from the petitioner or not is not an aspect which comes-into consideration in making payments of amounts found to be deposited in excess by virtue of proper assessment orders. We have already taken this view in (C.W. No. 979 of 1982) Claridges Hotels (P.) Ltd. v. Sales Tax Officer [1983] 53 STC 83 by our judgment dated 4th October, 1982. We reiterate the same. Accordingly we make the rule absolute and direct refund as prayed forthwith. The petitioners would be entitled to interest in accordance with law. The petitioners are also entitled to costs. Counsel''s fee Rs. 550.