Refund cannot be withheld on mere initiation of revision; statutory conditions and a valid withholding order are required.

Refund under the sales tax law cannot be withheld merely because suo motu revision proceedings have been initiated. The statutory scheme requires the assessing authority to determine excess tax paid and to grant refund by voucher or adjustment with the assessment order, and withholding is permissible only where the specific statutory conditions are satisfied and a competent order is passed under the withholding provision. In the absence of such an order, the authority remains bound to release the refund or give permissible adjustment, together with statutory interest where applicable. The writ petition therefore succeeded and the authorities were directed to act in accordance with the statutory refund mechanism.

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Issues: Whether the assessing authority could withhold the refund due to the dealer merely because suo motu revision proceedings were initiated, and whether the dealer was entitled to refund or adjustment along with statutory interest under the Act and Rules.

Analysis: The statutory scheme requires the assessing authority to determine excess tax paid and to issue refund by voucher or by adjustment along with the assessment order. Refund may be withheld only in the manner contemplated by the refund-withholding provision when the prescribed conditions are satisfied and an order is passed on that basis. Mere issuance of notice for suo motu action does not by itself authorise withholding of a refund. In the absence of an order under the withholding provision, the authority remained bound to refund the excess amount or adjust it against any outstanding demand, together with statutory interest where applicable.

Conclusion: The refund could not be withheld merely because revision proceedings had been initiated, and the dealer was entitled to refund or adjustment with statutory interest, if payable.

Final Conclusion: The writ petition succeeded and the authorities were directed to release the refund or make the permissible adjustment in accordance with the statutory scheme.

Ratio Decidendi: A refund due under the sales tax law cannot be withheld unless the statutory conditions for withholding are satisfied and a competent order is passed under the specific withholding provision; initiation of revision proceedings alone is insufficient.

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