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2021 (9) TMI 52 - HC - VAT and Sales TaxGrant of refund which was deducted from the petitioner’s bills in course of execution of a work contract - assessment period 2010-11 to 2013-14 - HELD THAT:- One cannot lose sight of the fact that the failure or inability of the revenue to frame an assessment should not place the assessee in a more disadvantages position then what it would have been an assessment had been made. In a case where an assessee chooses to deposit by way of abundant caution advance tax or self assessment tax which is in excess of his liability on the basis of the return furnished or there is any arithmetical error or inaccuracy, it is open to him to claim refund of the excess tax paid in the course of assessment proceeding. Section 240 of the Act enjoins an obligation on the revenue to refund the amount to the assessee without his having to make any claim in that behalf. In appropriate cases it is open for the assessee to bring facts to the notice of the concerned authority on the base of the return furnished which may have a bearing on the quantum of the refund. In the present case, the assessee had not paid tax voluntarily. From the beginning the assessee had contested any collection of tax from its payments by KSS. The Superintendent of taxes however insisted that such deduction be made and the amount so deducted be deposited with the government revenue. The assessee had every right to dispute such collection and such dispute when raised in the return filed, had to be adjudicated by the Superintendent. The amount so collected cannot be retained without adjudication. Not framing the assessment till the return gets time barred cannot be the ground for retaining such tax. The Superintendent not having framed assessment, must refund the amount in question to the petitioner with statutory interest - the respondent No.4 shall refund the said sum of ₹ 24,21,007/- to the petitioner with interest as prescribed under the Act - petition disposed off.
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