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2019 (8) TMI 1016 - HC - VAT and Sales TaxRefund claim - DVAT Act, 2004 - the Petitioner’s refund could not be stopped only because the Respondent chooses to create a demand, pursuant to the reassessment undertaken long after the expiry of the two months period in terms of Section 38 (3) (a) (ii) of the DVAT Act, within which the refund had to be processed - HELD THAT:- The legal position as regards creating a demand at the stage when refund is overdue is well settled in a large number of decisions of this Court. Reliance placed in the case of SWARN DARSHAN IMPEX (P) LTD. VERSUS COMMISSIONER, VALUE ADDED TAX AND ANOTHER [2010 (6) TMI 725 - DELHI HIGH COURT] where it was held that because of issuance of notice under Section 59 of the said Act, albeit beyond the prescribed time, the refund was not payable, is not tenable. This Court has no hesitation in holding that the exercise undertaken by the Respondent which resulted in the re-assessment order dated 15th March, 2019, creating a demand afresh for the first quarter of 2017-18 is, unsustainable in law. The reassessment exercise appears to have been undertaken at a stage long after the refund amount was due. The refund due could not have been stopped by creating a fresh demand pursuant to such reassessment exercise - the impugned order dated 15th March, 2019 passed by the VATO, Ward 41, creating a fresh demand for the first quarter of 2017-18 against the Petitioner is hereby set aside. Petition disposed off.
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