Refund of statutory pre-deposit cannot be withheld merely because revisional proceedings are pending without express statutory authority.

A statutory pre-deposit made for filing an appeal became refundable once the appeal was allowed on merits, and the tax authority could not retain it merely because a revisional show-cause notice had been issued. In the absence of an express statutory power to withhold refund on that ground, the department was bound to release the amount lawfully due. The refund was therefore treated as immediately payable with interest and costs.

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Issues: Whether the tax department could withhold refund of the pre-deposit made for filing the statutory appeal merely because a show-cause notice had been issued proposing revision of the appellate order.

Analysis: The appeal had been allowed on merits and the pre-deposit made under the appellate provision became refundable under the refund provision. The pendency of a revisional show-cause notice did not create any statutory authority to retain the amount. In the absence of a provision permitting withholding of refund on that ground, the department was bound to refund the amount lawfully due.

Conclusion: The withholding of refund was unlawful and the refund had to be made forthwith with interest.

Final Conclusion: The writ petition succeeded, and the petitioner was held entitled to immediate refund with interest and costs.

Ratio Decidendi: Where a statute mandates refund of a pre-deposit after an appeal is allowed, the authority cannot withhold that refund merely because revisional proceedings have been initiated unless the statute expressly so provides.

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