Page 70 - GSTL_14th May 2020_Vol 36_Part 2

172 GST LAW TIMES [ Vol. 36
“Issue notice on the Special Leave petitions as well as on prayer for interim
relief. Dasti granted.
In the meantime, tax payable by the petitioner-assessee during the
pendency of these Special Leave Petitions will be treated as deposit and not
payment, subject to the result of the Special Leave Petitions.”
2. While finally disposing of the appeal, the Court reiterated the posi-
tion that the amount deposited by the applicant shall remain with the Depart-
ment as deposit till the matter is finally decided by the High Court and liberty
was granted to the parties to apply to this Court for appropriate orders, if there
be any occasion for the same. The relevant part of the judgment of this Court
dated 28-4-2011 reads thus :
“11. So far as the amount of Rs. 13,19,11,404/- (Rupees thirteen crores
nineteen lakhs eleven thousand four hundred and four only which was de-
posited by MRF in terms of order of this Court dated 27-1-2009 in SLP (C)
No. 909 of 2009 is concerned, the said amount shall continue to remain with
the Department as deposit till the matter is finally decided by the High
Court. The liberty is also granted to the parties to apply to this Court for
appropriate orders, if there be any occasion for the same but only after
October 31, 2011.”
3. It is not in dispute that the remanded proceedings have now attained
finality and decided in favour of the applicant. As a result of which, the amount
deposited by the applicant was required to be returned to the applicant. The De-
partment has provided refund of the principal amount along with interest from
10-8-2017 @ 10% in terms of Section 44(4) of the Kerala General Sales Tax Act,
1963 (for short KGSTA).
4. According to the applicant, however, the applicant ought to be paid
interest @ 9% from the date of deposit of the amount until the same is refunded
by the Department.
5. On bare reading of the order dated 27-1-2009, in our opinion, the ap-
plicant was directed to pay the amount equivalent to tax payable but that was to
be treated as “deposit” with the Department and not payment (of tax dues). The
expression used ‘will be treated as deposit not payment’; is quite significant. That
position is restated in the final order passed by this Court on 28-4-2011.
6. The stand of the Department that the refund process ought to be
governed by the provisions of the KGSTA, in our opinion, is inapposite. The
amount deposited by the applicant was not towards tax dues as such, but to be
treated as “deposit” in terms of order of the Court. That deposit would continue
to remain with the Department until the final decision of the High Court and to
abide by such orders as may be passed by this Court regarding its refund along-
with interest or otherwise, in terms of the final judgment of this Court dated
28-4-2011.
7. Therefore, we are inclined to allow this application in terms of pray-
er Clause (c). The necessary adjustments of Rs. 9,96,38,016/- (Rupees Nine Crore
Ninety Six Lakh Thirty Eight Thousand Sixteen only), being the net interest re-
maining due and payable, be given against future liabilities of the applicant to
pay tax under the Kerala Value Added Tax Act, 2003.
8. Application allowed in the above terms.

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