TMI Blog2007 (2) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... forementioned order lacks complete application of mind and the primary requirements of section 12(6) of the 1948 Act remains unsatisfied. A perusal of section 12(6), shows that power to withhold refund could be exercised in cases where appeal or further proceedings under the 1948 Act are pending and the Assessing Authority is of the opinion that the refund is likely to adversely affect the recovery then refund may be withheld and the case be referred to the Commissioner whose order is to be considered final. The order withholding refund is blissfully silent as to how the refund would adversely affect the recovery. The order is absolutely laconic. There is not even a whisper of the material on the basis of which satisfaction has been r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted a sum of Rs. 5,50,000/- on September 6, 2005. Ultimately, the order of assessment was set aside by the VAT Tribunal and the matter was remitted back to the assessing authority to pass fresh order in accordance with law, vide order dated July 11, 2006. After the remand by the VAT Tribunal, the matter has not been decided by the assessing authority inspite of requests made by the petitioner. Thereafter the petitioner filed application dated July 26, 2005, for refund of the amount deposited on September 6, 2005. When no action was taken on the application of the petitioner either for decision of the remand case or for refund of the amount deposited, the petitioner approached this Court by filing the present petition on 29.11.2006. After no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is of the opinion that the refund is likely to adversely affect the recovery, the Assessing Authority may withhold the refund and refer the case to the Commissioner whose order shall be final. I am of the view that the case is covered U/s 12(6) of the Act, and allowing of refund will adversely affect the chances of recovery of the amount. Accordingly, I hereby withhold refund of Rs. 5,50,000/- for the year 1992-93 of the above said dealer U/s 12(6) of the Act. Mr. Y.P. Singla, learned counsel for the petitioner has argued that once the appeal filed by the petitioner against the order of assessment has been accepted by quashing that order then even if the case has been remanded back, the petitioner becomes entitled to refund o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready reference:- Where an order allowing refund is the subject matter of an appeal or further proceedings or where any other proceedings under this act are pending and the Assessing Authority is of the opinion that the refund is likely to adversely affect the recovery, the Assessing Authority may withhold the refund and refer the case to the Commissioner whose order shall be final. A perusal of the aforementioned provisions shows that power to withhold refund could be exercised in cases where appeal or further proceedings under the 1948 Act are pending and the Assessing Authority is of the opinion that the refund is likely to adversely affect the recovery then refund may be withheld and the case be referred to the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
