Refund of tax paid under appeal condition cannot be withheld because rectification applications are pending, with statutory interest payable.

Where appeals had already been allowed, tax paid as a condition for entertaining those appeals became refundable, and the pendency of rectification applications before the Tribunal did not justify withholding either the refund or the statutory interest on it. The Court held that if the rectification applications were later allowed, the State could recover the amount in accordance with law. The petitioner was therefore entitled to immediate refund of the tax and accrued statutory interest, and payment was directed forthwith.

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Issues: Whether the petitioner was entitled to refund of tax paid for the assessment years in question together with statutory interest despite the pendency of rectification applications before the Tribunal.

Analysis: The Tribunal had already allowed the appeals, as a result of which the tax paid pursuant to the condition for entertainment of the appeals became refundable. The pendency of rectification applications did not justify withholding the refund or the statutory interest accrued thereon. If the rectification applications were ultimately allowed, the State was left at liberty to recover the amount in accordance with law.

Conclusion: The petitioner was held entitled to immediate refund of the tax and the statutory interest accrued thereon, and the State was directed to make payment forthwith.

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