Allahabad High Court
M/S ELENTECH INDIA PRIVATE LIMITEDversusSTATE OF UTTAR PRADESH AND ANOTHER
- Decided
Holding
The writ petition is disposed, with the court directing the revenue authority to decide the petitioner’s objection within one month and to prohibit withdrawal from the attached bank account.
Summary
The High Court examined a writ petition filed by Elentech India Private Limited challenging the Uttar Pradesh revenue department’s computation of interest on VAT demands for assessment years 2012‑13 to 2015‑16, issued under section 28 of the U.P. VAT Act, 2008. The petitioner asserted that it had paid the disputed demand, together with interest, within one year, yet the department had calculated interest for ten years. It also lodged a written objection on 27‑04‑2026, which remained pending, and complained that its bank account had been attached. The Court held that the factual dispute over interest could be resolved by the revenue authority’s decision on the pending objection and that continuation of the writ would serve no useful purpose. Consequently, the Court disposed of the writ petition, directing the respondent to decide the objection within one month and prohibiting any withdrawal from the attached bank account pending that decision.
Issues considered
- Whether the revenue authority’s computation of interest on the VAT demand for the assessment years 2012‑13 to 2015‑16 is correct
- Whether the writ petition should be dismissed and the pending written objection decided by the revenue authority
Legislation cited
- U.P. VAT Act, 2008 — s. 28
Subjects
- VAT
- interest computation
- tax demand
- U.P. VAT Act, 2008
- writ petition
- bank account attachment
- assessment year
- objection
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT TAX No. - 2426 of 2026
M/S Elentech India Private Limited
.....Petitioner(s)
Versus
State Of Uttar Pradesh And Another
.....Respondent(s)
Counsel for Petitioner(s) : Sarvesh Pandey, Shivam Tripathi
Counsel for Respondent(s) : C.S.C.
Court No. - 3
HON'BLE SAUMITRA DAYAL SINGH, J.
HON'BLE SWARUPAMA CHATURVEDI, J.
1. Heard Shri Shivam Tripathi, learned counsel for the petitioner and Shri
Arvind Mishra, learned counsel for the State.
2. Limited dispute exists, as to correct computation of interest on tax
demand created by orders dated 13.03.2016, 22.12.2016, 13.02.2018 and
25.03.2019 for Assessment Years 2012-2013, 2013-2014, 2014-2015 and
2015-2016 all described to have been passed under section 28 of the U.P.
VAT Act, 2008.
3. According to the petitioner, notwithstanding pendency of revision filed
against the order of the Tribunal (arising from the assessment order above
described), the petitioner had paid off the disputed demand within one
year, together with interest.
4. Without giving benefit of the amount thus paid, the revenue authority
has computed interest for ten years.
5. With respect to that fact dispute, it is further submitted that the
petitioner has filed written objection before respondent no. 2 on
27.04.2026. The same is described to be pending.
6. In the meantime, petitioner's bank account has been attached.
7. Thus, a computation error is claimed by the petitioner. The issue is to
be addressed by respondent no. 2, notwithstanding, the pendency of Trade
Tax Revision filed by the petitioner against the quantum.
WTAX No. 2426 of 2026
2
8. In view of such facts, no useful purpose may be served in keeping the
present writ petition pending or calling for counter affidavit at this stage.
The writ petition is disposed of with a direction upon respondent no. 2 to
proceed and decide the petitioner's objection dated 27.04.2026
(Annexure-20 to the writ petition) within a period of one month from
today, by a reasoned and speaking order.
9. For a period of one month or till disposal of the objection, though the
bank account of the petitioner may continue under attachment, no amount
may be withdrawn from the said account.
(Swarupama Chaturvedi,J.) (Saumitra Dayal Singh,J.)
May 6, 2026
Bhanu
Digitally signed by :-
BHANU PRATAP KUSHWAHA
High Court of Judicature at Allahabad
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