M/S Johnsons Lifts P Ltd. Branch Trikuta vs Ut Of J&K And Ors on 22 April, 2025

Jammu & Kashmir High Court

M/S Johnsons Lifts P Ltd. Branch Trikuta vs Ut Of J&K And Ors on 22 April, 2025

Author: Rajnesh Oswal

Bench: Rajnesh Oswal

                                                              Sr. No. 7
        HIGH COURT OF JAMMU & KASHMIR AND LADAKH
                        AT JAMMU
CJ Court
Case: WP(C) No. 1731/2022
M/s Johnsons Lifts P Ltd. Branch Trikuta          ...Petitioner(s)/Appellant(s)
Nagar Jammu.

                     Through: Mr. M A Bhat, Advocate.

                                 V/s

UT of J&K and ors.                                           .... Respondent(s)

                       Through: Ms. Monika Kohli, Sr. AAG.


CORAM: HON'BLE THE CHIEF JUSTICE
       HON'BLE MR. JUSTICE RAJNESH OSWAL, JUDGE.


                               ORDER(ORAL)

22.04.2025

01. In essence, all that the petitioner has prayed for, is a mandamus

commanding the respondents to award interest to the petitioner-Company

on the refund of ₹ 26,62,170/- as admissible in terms of Section 10-B of the

Jammu and Kashmir General Sales Tax Act, 1962 (‘the Act of 1962’).

02. It is not disputed that the assessing authority vide order dated July 7,

2014 passed under Section 15-A(9) of the Act of 1962, had seized the goods

of the petitioner -Company, that were being carried in five vehicles. And,

aggrieved by the said order, the petitioner had filed an appeal before the

Deputy Commissioner Commercial Taxes (Appeals) Jammu. But, in the

meanwhile, another consignment of the petitioner was stopped at a check-

post at Lakhanpur on November 26, 2014, and the goods were seized.

Further, order dated November 26, 2014 was passed, under 15-A(9) of Act

–2–

of 1962, for imposition of security. And, even the said order was assailed by

the petitioner-Company before the Appellate authority. It is not in dispute

that vide order dated March 12, 2016, both the appeals, preferred under

Section 11 of the Act of 1962, were accepted. And, accordingly, the

respondents were directed to refund the security levied and realized from

the petitioner. The said order, referred to above, was challenged by the

Revenue before the Jammu and Kashmir Sales Tax (Appellate) Tribunal,

Jammu. But, vide order dated April 25, 2019, those appeals were dismissed.

03. As indicated earlier, a short issue that is sought to be raised before

this Court is: whether the petitioner is entitled to interest on the amount of

refund that was remitted as security, in terms of Section 10-B of the Act of

1962 ?

04. However, upon being pointedly asked that once the appellate

authority, vide order dated March 12, 2016 (ibid), had only ordered the

amount of security levied and realised to be refunded and the said order

having attained finality, how in the wake of the principle of constructive

res judicata and/or under Order 2 Rule 2 of the Code of Civil Procedure,

the petitioner would be entitled to claim interest in the present proceedings?

05. Further, even the provisions of Section 10-B of the Act of 1962

provides for interest on refunds where any tax or penalty is found to have

been paid in excess pursuant to any order and, therefore, the amount

remitted by the petitioner as security, neither being tax or penalty, the said

provisions would also not enure to the advantage of the petitioner.

–3–

06. Faced with this, learned counsel for the petitioner submits that he be

afforded a short accommodation to seek instructions and/or assist the Court.

Adjourned to 28th April 2025.

                              (RAJNESH OSWAL)             (ARUN PALLI)
                                        JUDGE             CHIEF JUSTICE
Jammu
22.04.2025
SUNITA/PS