Facts of the Case

The petitioner, Sunil Kumar, purchased two motor vehicles, namely a Mercedes Benz on 08.09.2021 and a KIA Sonet on 21.08.2021. While approaching the competent authorities for registration of these vehicles, he was allegedly required to pay excess amounts under the heads of GST, Cess, and other taxes.

The petitioner objected to the alleged excess levy but deposited the demanded amount under protest because the vehicle registration process was time-bound. Thereafter, he served a legal notice dated 06.01.2022 upon the concerned authorities seeking refund of the allegedly excess tax and cess collected. As no effective action was taken on the legal notice, the petitioner approached the Punjab & Haryana High Court by filing the present writ petition.

Issues Involved

  1. Whether the authorities had collected GST, Cess, and other taxes in excess while registering the petitioner's vehicles.
  2. Whether the petitioner was entitled to consideration of his claim for refund of the alleged excess amount.
  3. Whether the competent authority should be directed to decide the pending legal notice by passing a reasoned order after granting an opportunity of hearing.

Petitioner's Arguments

  • The petitioner contended that the authorities illegally charged excess GST, Cess, and other taxes during registration of his Mercedes Benz and KIA Sonet vehicles.
  • He argued that such collection was contrary to law and that the amount was deposited only under protest to avoid delay in vehicle registration.
  • It was submitted that a detailed legal notice dated 06.01.2022 had already been served upon the authorities seeking refund of the excess amount.
  • The petitioner limited his prayer before the Court by requesting a direction to the respondents to consider the legal notice and pass a reasoned order thereon.

Respondents' Arguments

  • The State counsel accepted notice on behalf of the respondents.
  • It was submitted that the respondents had no objection if an appropriate direction was issued requiring the competent authority to examine the petitioner's legal notice and decide the same in accordance with law.

Court Order / Findings

The Punjab & Haryana High Court observed that the petitioner had already submitted a legal notice raising the grievance regarding alleged excess collection of GST, Cess, and other taxes and claiming refund.

Considering the limited relief sought and the consent of both parties, the Court disposed of the writ petition without examining the merits of the tax dispute.

The Court directed Respondent No. 3 to:

  • Consider the petitioner's legal notice dated 06.01.2022.
  • Grant an opportunity of hearing to the petitioner.
  • Pass a reasoned and speaking order.
  • Complete the entire exercise within three months from the date of receipt of the certified copy of the Court's order.

Important Clarification

  • The High Court did not determine whether the GST, Cess, or Road Tax had actually been collected in excess.
  • The Court did not order refund of any amount.
  • The judgment merely directs the competent authority to examine the petitioner's claim objectively after providing an opportunity of hearing and thereafter pass a speaking order in accordance with law.
  • The merits of the refund claim remain open for determination by the concerned authority.

Link to Download the Order


https://www.mytaxexpert.co.in/uploads/1785322982_2239compressed.pdf

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