Immediate refund of excess tax cannot be withheld merely because a revision against assessment is pending.

Section 62 of the West Bengal Value Added Tax Act, 2003 requires refund of tax paid in excess of the amount due, and rule 59 of the West Bengal Value Added Tax Rules, 2005 allows a refund adjustment order with any permissible set-off against existing liabilities. A pending revision against the assessment did not justify withholding the excess amount shown in the demand notice, because the assessee would remain entitled to refund whether the revision succeeded or failed. The withholding was therefore unsustainable, and the assessee was entitled to immediate refund of the excess amount.

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Issues: Whether the assessee was entitled to immediate refund of the excess amount shown in the demand notice despite a pending revision concerning the assessment.

Analysis: Section 62 of the West Bengal Value Added Tax Act, 2003 obliges refund of tax paid in excess of the amount due, and rule 59 of the West Bengal Value Added Tax Rules, 2005 contemplates issuance of a refund adjustment order with any permissible adjustment against existing liabilities. The pending revision did not justify withholding the refund because, even if the revision ultimately succeeded, the assessee would be entitled to a larger refund, and if it failed, the amount shown as excess in the demand notice would still remain refundable. The withholding reason was therefore held to be unsustainable.

Conclusion: The assessee was held entitled to refund of Rs. 7,86,330.

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