{"id":6572,"date":"2025-10-30T17:20:04","date_gmt":"2025-10-30T11:50:04","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6572"},"modified":"2025-10-30T17:20:04","modified_gmt":"2025-10-30T11:50:04","slug":"refund-must-be-granted-as-no-stay-on-judgment-excluding-trade-discounts-from-turnover-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/refund-must-be-granted-as-no-stay-on-judgment-excluding-trade-discounts-from-turnover-hc","title":{"rendered":"Refund Must Be Granted as No Stay on Judgment Excluding Trade Discounts From Turnover | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000409596\/refund-of-vat-ordered-since-hc-judgment-excluding-trade-discounts-from-turnover-not-stayed-by-sc-hc\">DCM Shriram Industries Ltd. vs. State of U.P. (2025) 35 Centax 170 (All.)<\/a>\r\n<\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Shekhar B. Saraf<\/strong> &amp; <strong>Praveen Kumar Giri<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri Nishant Mishra<\/strong> &amp; <strong>Vedika Nath<\/strong>, for the Petitioner.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner-assessee, a registered dealer under the Uttar Pradesh Value Added Tax Act, 2008, filed a petition challenging the inaction of the departmental authorities in granting refund as directed in the assessment order. The said assessment order had been passed in view of the judgment of the Allahabad High Court in Jain Distillery Private Limited v. State of U.P. and Ors., 2021 (10) ADJ 69 (All.), wherein it was held that the amount received by a dealer from a buyer as a discount could not be included in taxable turnover for levy of VAT. The petitioner submitted that despite a clear direction in the assessment order to refund the amount, the authorities withheld the same on the ground that a Special Leave Petition had been filed by the State against the said judgment, though no stay had been granted by the Supreme Court. The matter was accordingly placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that in the absence of any stay on the operation of the judgment in Jain Distillery Private Limited (supra), the authorities were not justified in retaining the petitioner\u2019s amount. It was observed that mere pendency of the SLP did not confer any authority on the Department to withhold the refund, and such retention amounted to holding money without authority of law under Section 43 of the Uttar Pradesh Value Added Tax Act, 2008. The Court noted that the assessment order had already directed a refund, subject to the principle of unjust enrichment, and that the petitioner was willing to furnish an indemnity bond to safeguard the revenue. Accordingly, the authority concerned was directed to refund the amount to the petitioner upon submission of an indemnity bond within a period of eight weeks.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Jain Distillery Private Limited v. State of U.P. \u2014 2021 (10) ADJ 69 \u2014 Referred [Para 2]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: DCM Shriram Industries Ltd. vs. State of U.P. (2025) 35&hellip;<\/p>\n","protected":false},"author":8,"featured_media":6579,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-6572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Refund Must Be Granted as No Stay on Judgment Excluding Trade Discounts From Turnover | HC<\/title>\n<meta name=\"description\" content=\"Allahabad HC directed VAT refund since no SC stay existed on ruling excluding trade discounts from turnover; mere SLP pendency can\u2019t justify withholding refund.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/refund-must-be-granted-as-no-stay-on-judgment-excluding-trade-discounts-from-turnover-hc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Refund Must Be Granted as No Stay on Judgment Excluding Trade Discounts From Turnover | HC\" \/>\n<meta property=\"og:description\" content=\"Allahabad HC directed VAT refund since no SC stay existed on ruling excluding trade discounts from turnover; 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