Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2012 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (1) TMI 145 - HC - VAT and Sales TaxClaim of the refund along with interest withheld - whether once order withholding refund had been held to be illegal, the State was justified in not granting refund to the petitioner? Held that:- The respondents while withholding the amount under section 41(1) of the Act had nowhere recorded any satisfaction that the withholding of the refund was in the interest of the Revenue. In the absence of any valid sanction authorizing the State to retain the amount which had been deposited by the petitioner as cash security, the State was duty-bound to refund the same when the appeal had been decided in favour of the petitioner. The only conclusion that follows is that the amount which was withheld by the respondent was beyond jurisdiction. Once that is so, the assessee was entitled to refund along with interest after the expiry of the period of 60 days from the date the appellate authority decided the appeal in favour of the petitioner, i.e., August 31, 2010. As per stand of the State, the amount has already been released to the petitioner. Under the circumstances, WP disposed of by directing the State to pay the interest on the amount of refund in accordance with law within two months from the date of receipt of a certified copy of the order.
|