GUJARAT VALUE ADDED TAX ACT, 2003

Section 39

Refund - Jurisdiction - Withholding of refund - Refund of pre-deposit amount alongwith the interest

By way of this appeal, assessee pleaded for quashing and setting aside Order passed by State Sales Tax Officer withholding the refund of Rs. 15 lakhs paid as pre-deposit. Further plea was to direct authorioty to forthwith refund the said amount along with 18% interest from the date of pre-deposit. Held: A plain reading of section 39 stipulates that the power is vested in the Commissioner to withhold the refund upon recording an opinion that the revenue would be adversely affected and that too after affording due opportunity to the assessee. There was no order passed by the Commissioner recording his satisfaction and since there is no order of the Commissioner, there was no question of affording any opportunity. The Sales Tax Officer has no authority to withhold the amount under section 39. Therefore, refund could not be withheld by authority.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

SUBSCRIBE FOR FULL CONTENT