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2012 (11) TMI 1044 - HC - VAT and Sales TaxWithholding refund claim with interest - Held that:- It was noticed that the order giving rise to refund was subject-matter of further proceedings and it had been certified that the recovery of the amount ultimately found due would be adversely affected later on, if the refund is allowed and the refund was directed to be withheld. Section 21 of the Act provides that the taxing authority itself is to record reasons in writing and if the authority is below the rank of the Commissioner, he is to refer the case within 30 days of the application for refund to the Commissioner. Thus, withholding order of refund is held to be legally unsustainable, the order dated September 27, 2012 (annexure P5 in CWP No. 20823 of 2012) is hereby quashed. A perusal of section 20(4) to 20(11) goes on to show that where the excess amount has been paid, refund will be allowed by the Assessing Authority and shall carry interest at one per cent per month Present petition is allowed and the respondents are directed to refund sum of ₹ 21,88,947 along with interest at one per cent per month from the date after expiry of 60 days after passing of the assessment order, i.e., April 8, 2012 till payment. The said amount be paid to the petitioner within a period of one month from the date of receipt of certified copy of the order.
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