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2016 (1) TMI 830 - HC - VAT and Sales TaxRefund of tax paid - Interstate sale or stock transfer - release of the bank guarantee - According to the petitioner, the goods were directly dispatched to its depots located in the State of U.P. and that the goods did not move in pursuance of any pre-determined contract or sale. - Held that:- until and unless there is an adjudication and an authority finds that the amount is refundable, no amount can be refunded to the petitioner at this stage since we find that the assessment proceedings are still pending before the Assessing Officer. - the prayer for refund of the disputed tax pursuant to the setting aside of the assessment order cannot be granted to the petitioner at this stage. - Decided against the assessee. Release of the bank guarantee - Held that:- once the assessment order is set aside by the Appellate Authority, the security relating to the demand comes to an end. Once the assessment order is set aside, there is no requirement for the assessee to continue to furnish security or in the instant case, the bank guarantee. - In the light of the aforesaid, the impugned notice dated 15.12.2015 directing the petitioner to extend the bank guarantee can not be sustained and is quashed. The petitioner is entitled to get its bank guarantee released. - Decided in favor of assessee.
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