Tax refund cannot be withheld merely due to a pending review petition; refund and interest become payable.

Refund of tax ordered under an appellate decision could not be retained merely because a review petition was pending. The appellate authority had already allowed the assessee's appeal and directed refund of the additional tax, so the department's request to withhold payment was not treated as a valid basis for continued retention of refundable ? avoid. The operative effect was that the refund had to be released in accordance with the appellate order, and interest was payable for the delay in making payment.

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Issues: Whether the revenue could withhold refund of tax already directed to be paid merely because a review petition was pending.

Analysis: The appellate authority had allowed the assessee's appeal and ordered refund of the additional tax amount. The department sought approval under section 44 of the Haryana General Sales Tax Act, 1973 to withhold the refund, but the pendency of a review petition was not treated as a sufficient ground to retain money that had become refundable under the appellate order. The Court directed refund and also awarded interest for the period of delay.

Conclusion: The refund could not be withheld on the ground of a pending review petition, and the assessee was entitled to refund with interest.

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