Order Date – 31 October 2023

Parties: M/s Ganesh Steel (India) Vs State of Punjab & others

Facts –

• The Petitioner, M/s Ganesh Steel (India), aggrieved by the denial of a refund by the State Tax Officer, on the ground that the Department is in the process of filing an appeal against the order has filed this petition.
• Accordingly, the refund application was recommended to be rejected.

Issue –

• Whether the denial of refund is proper where the department is in the process of filing an appeal against the order?

Order –

• The Divisional Bench of Hon’ble High Court observed that2 while passing the impugned order that the writ petition first came up for hearing on 03.07.2023 and an opportunity was given to the State to submit whether an appeal had been filed or not. More time was taken on 21.07.2023 and 29.09.2023 and proceedings had been deferred. However, the appeal has still not been filed.
• Thus, it is clear that the State is only dilly-delaying on the issue and merely on account of the fact that the State is in the process of filing an appeal, the State is not justified in divesting the petitioner of his fruits of litigation which have accrued to him despite a period of 1 year 3 months having gone by.
• Hence the State is directed to refund the amount due within 2 weeks and when any order is passed in favour of the State in further proceedings, the said directions of refund would not stand in the way to recover the amount refunded.