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2014 (8) TMI 817 - ALLAHABAD HIGH COURTInterest claim on refund - Whether a dealer can make adjustment while depositing tax on the basis of tax, admitted to be payable, out of certain amounts which according to him had been deposited in excess for some other assessment periods - Held that:- Sub-section (1) of Section 29 of UPTT requires the Assessing Authority to refund to a dealer any amount of tax paid in excess of the amount due from him under the Act. Under the proviso, any amount found to be refundable had to be first adjusted towards tax or any other amount outstanding against the dealer under the Act. Sub-section (2) imposes a liability for the payment of interest upon the amount found to be refundable. The liability to pay interest would arise if it is not refunded within three months from the date of the order of refund passed by the Assessing Authority or from the date of the receipt by him of the order of refund, where it is passed by any other Court or competent authority. The Supreme Court in Commissioner of Sales Tax, U.P. Vs. Hind Lamps Ltd. (2008 (7) TMI 563 - SUPREME COURT OF INDIA) has clearly held that the expression an amount to be "found to be refundable" must be as a result of an adjudication. Under the Explanation I to sub-section (2), the date of refund is relatable to the intimation regarding the preparation of the refund voucher. The decision in Commissioner of Sales Tax, U.P. Vs. Hind Lamps Ltd. has been followed in the case of the assessee itself by the Supreme Court on 4 March 2014 while reversing the judgment of the learned Single Judge of this Court in Lucent Technologies. In view of this clear legal position, the conflict between the views taken by the two Division Benches of this Court in Indodan Milk Products [1973 (7) TMI 90 - ALLAHABAD HIGH COURT] and in Ellora Mechanical Products [2006 (1) TMI 557 - ALLAHABAD HIGH COURT] would stand resolved in terms of the law laid down by the Supreme Court, as noticed above. - Decided in favour of assessee.
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