I APHC010162902024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY. THE EIGHTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION No: 8356 OF 2024 Between: M/s. OLAM Food Ingredients India Pvt. Limited, {Formerly OLAM Agro India Pvt. Ltd.) Gajapathinagaram, Kotha Road, Marupalli Village, Vizianagaram, Andhra Pradesh - 535270. ...PETITIONER AND 1. The Additional Commissioner (CT), (VAT Refunds), Commercial Taxes Department, Government of Andhra Pradesh. 2. The Joint Commissioner (CT), Visakhapatnam, State Taxes Complex, Chinagadhali, Visakhapatnam, - 530040. 3. The Commercial Tax Officer, Anakapalli Circle, D.No.12-5-26, New Colony, Anakapalli, Visakahapatnam - 531001. 4. The Deputy Commissioner, Visakhapatnam - 2 Division, State Taxes Complex, Chinagadhali, Visakhapatnam, - 530040. 5. The Principal Secretary, Department of Finance, Secretariat Buildings, Velagapudi - 522503. 6. The State of Andhra Pradesh, Rep. by Chief Commissioner of State Tax, Commercial Taxes Department Vijayawada-521151. ...RESPONDENTS % Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, Order or Direction particularly one in the nature of WRIT OF MANDAMUS' idrecting the Respondent No.1, 5 and 6 to forthwith grant cash refund of Rs. 11,18,95,619/- as approved in Order CCT Ref No. VAT/(RJ)/53/2022 dated 03.04.2023, passed by Respondent No. 1, along with applicable statutory interest of 1.25% per month under Section 38 (6) of the APVAT Act. lA No: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant interim relief to the Petitioner directing the Respondents to forthwith 100% of the refund amount of Rs. 11,18,95,619 as cash refund to the bank account of the Petitioner. Counsel for the Petitioner: LAKSHMI KUMARAN Counsel for the Respondent Nos.1 to 6: GP FOR COMMERCIAL TAX The Court made the following order: grant SRiDHARAN APHC010162902024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3541] WEDNESDAY, THE EIGHTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 8356/2024 Between: ...PETITIONER M/s. Olam Food Ingredients India Pvt. Limited AND ...RESPONDENT(S) The Additional Commissioner Ct and Others Counsel for the Petitioner: 1.LAKSHMI KUMARAN SRIDHARAN Counsel for the Respondent(S): 1 .GP FOR COMMERCIAL TAX The Court made the following order:/per Hon'We Sri Justice R. Raghunandan Rao) The petitioner herein is a dealer registered under the Andhra Pradesh Value Added Tax Act, 2005 and is in the business of export of cashews, chillies and rice. The petitioner had affected certain sales of chillies and other products and sought to pay concessional tax @ 2% covered under C Forms as well as exemption from payment of tax under the cover of H Forms under Section 6 of the CST Act. Apart from this, the petitioner also sought exemption under Section 6-A of the CST Act for payment of output tax. RRR, J&JS,J W.P.No.8356 of 2024 2. A VAT audit was conducted in relation to the petitioner for the tax period 01.04.2015 to 30.06.2017. Subsequent to the said audit, a show-cause notice, dated 15.06.2019, was issued to the petitioner. The petitioner filed a reply to this show-cause notice on 18.06.2019 and thereafter, an assessment order was passed on 26.06.2019 by the 3^^" respondent, holding that the petitioner had accumulated excess input tax of Rs. 11,18,95,619/-, for the aforesaid tax period. The order also stated that the petitioner could file application for refund of excess input tax credit. In pursuance of this order, the petitioner filed an application for refund of the accumulated excess input tax credit by an application, dated 02.07.2019. Thereafter, the petitioner reminded the respondent authorities about the request for refund by various letters, including letters, dated 15.10.2019, 15.05.2020, 10.12.2020 11.11.2021,25.04.2022 and 04.05.2022, an 16.06.2021, 3. The 3 respondent, after a lapse of 3 years, issued a notice in Form VAT 351, dated 25.06.2022, requesting the petitioner to confirm the claim of refund of the aforesaid amount. This confirmation was given by the petitioner in Form VAT 352 on 25.06.2022. Thereafter, the 3^^ respondent issued an order of approval claim in Form VAT 355A on 25.06.2022 and a refund voucher was also issued on 25.06.2022. Thereafter a personal hearing was granted on 07.10.2022 and an order of refund was passed on 03.04.2023 vide CCT Ref.No.VAT/(R)/53/2022. Despite the said refund order, the petitioner did not receive any refund. Aggrieved by the inaction in refunding r' •: 3 % RRR, J&JSJ W.P.No.8356of2024 the claims due to the petitioner, the present Writ Petition has been filed by the petitioner. 4. The 3^^ respondent has filed a counter affidavit, dated 22.07.2024. The objection of the 3'"'^ respondent was that the petitioner was required to file certain required documents in Form VAT 352 and that such documents have not been filed. The learned counsel appearing for the 3 respondent contends that non-filing of such documents was sufficient for the respondent not to process the refund of the petitioner. It is further contended by the learned counsel, relying upon Section 38 of the Act, that no amount need be refunded, until the documents had been produced. However, the 3 respondent also states that the petitioner had submitted these documents on 25.06.2022, after a lapse of 2 years 11 months and had attended for a rd rd personal hearing on 07.10.2022. The 3'^^ respondent, after setting out such contentions, stated that the refund of excess tax paid was cleared by way of a refund order, dated 03.04.2023 and further refund on the basis of such an order was beyond the control of all the respondents as it is pending in CFMS for clearance of funds. 5. It appears that the refund amount has also been cleared during the pendency of the present Writ Petition, by way of payment made on 6. 24.09.2024. Sri Raghavan Ramabadran, learned counsel appearing for the petitioner would submit that the petitioner was still due for interest on the delay 7. 4 RRR, J&JS,J W.P.No.8356of2024 in payment of refund to the petitioner. He relies upon Rule 35 (9) (e) of the AP VAT Rules, which states as follows: ‘e) Where the refund in not made within ninety days, the interest shall be payable at the rate of [one and quarter percent (1.25%)] per month from the date after the expiry of the said ninety days till the date of actual refund. The interest in respect of part of month shall be proportionately and for this purpose, month shall of thirty days.” computed mean a period 8. The learned Government Pleader for Commercial Tax other hand, contends that the calculation of the interest could from 03.04.2023 and not from 02.07.2019, documents had been submitted and the order of refund 03.04.2023. In the alternative, he would also interest could have been calculated had been placed before the 3'^ respondent on the at best start only in as much as the required had been passed on contend that even otherwise on 25.06.2022, if the required documents 9. The 3™ respondent is also present in the Court today and sought time for filing additional affidavit on the ground that, certain additional facts need to be placed before this Court. This Court had, thereupon the 3'"^ respondent as to the additional facts that he enquired with proposes to place before this Court by way of an additional counter affidavit. The 3'“ respondent stated that the petitioner was required to file and affidavit, failing which refund could not be made. an indemnity bond, cancelled cheque 5 RRR, J&JSJ W.P.No.8356 of 2024 This Court is not willing to accept this contention. The requirement of Section 38 (1) of the Act, under which the refund of tax can be sought, stipulates that, the excess of tax shall be refunded within a period of 90 days on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder. The 3'^'^ respondent has not been able to place any material before this Court to show that the submission of indemnity bond, cancelled cheque and the affidavit are prescribed under the rules. 10. The learned counsel for the petitioner would submit that there was compliance of this requirement as these documents were sought by the 3^^^ respondent only in the year 2022 and the same had been submitted 11. immediately thereafter. 12. This dispute need not detain this Court in as much as neither the rules nor the Act stipulate such documents to be furnished along with the application mentioned under Section 38 (1). Though such document may have been required by the 3’''^ respondent, the same would not be a bar against the processing of the application of the petitioner and such requirement, which is outside the prescribed format, cannot be set up as a ground for rejecting the payment of interest on the delayed payments of the excess tax. 13. In these circumstances, this Writ Petition is disposed of, recording the fact that the refund amount has already been made and that the said 6 RRR, J&JS,J W.P.No.8356 of 2024 assesses is entitled to interest as prescribed under Rule 35 (9) (e) r/w Section 38 of the Act. Accordingly, the petitioner shall be entitled to interest, prescribed under Rule 35 (9) (e) from the lapse of three (03) months from the date of application made by the petitioner on 02.07.2019. The said interest is to be calculated till 24.09.2024 which is the date of refund. There shall be order as to costs. 14. as no As a sequel, pending miscellaneous applications, if any, shall stand closed. Sd/- M. SRINIVAS ASSISTANT REGISTRAR //TRUE COPY// To, 1. The Additional Commissioner (CT), (VAT Refunds), Commercial Department, Government of Andhra Pradesh. Taxes 2. The Joint Commissioner (CT), Visakhapatnam, Chinagadhali, Visakhapatnam - 530040. 3. The Commercial Tax Officer State Taxes Complex, Anakapalli Circle, D.No. 12-5-26, New Colony, Anakapalli, Visakahapatnam - 531001. 4. The Deputy Commissioner, Visakhapatnam-2 Division, State Taxes Complex, Chinagadhali, Visakhapatnam- 530040. 5. The Principal Secretary, Department of Finance, Secretariat Buildings, Velagapudi - 522503. 6. The Chief Commissioner of State Tax, State of Andhra Pradesh Commercial Taxes Department, Vijayawada -521151. 7. One CC to Sri Lakshmi Kumaran Sridharan, 8. Two CCs to GP for Commercial Tax Advocate [OPUC] High Court of Andhra Pradesh [OUT] 9. Two CD Copies. HIGH COURT DATED:18/06/2025 ORDER WP No. 8356 OF 2024 DISPOSING OF THE WRIT PETITION WITHOUT COSTS