Refund entitlement under VAT exemption survives agent-made deposit when tax is paid on behalf of the industrial unit.

Refund under section 42(4)(d) of the U.P. Value Added Tax Act, 2008 cannot be denied merely because the net tax was deposited by the assessee's agent rather than personally by the dealer. The operative requirement is that the tax be paid on behalf of the exempted industrial unit and along with the return in the prescribed manner. Where the unit had valid exemption under section 4A of the U.P. Trade Tax Act, 1948 and the deposit was made for its benefit, the statutory condition for refund is satisfied. Personal payment by the dealer is not required, so the revenue may not withhold refund on that ground alone.

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Issues: Whether refund under section 42(4)(d) of the U.P. Value Added Tax Act, 2008 could be denied merely because the net tax was deposited by the assessee's agent and not by the assessee personally.

Analysis: Section 42(4)(d) entitles an industrial unit enjoying exemption under the earlier sales tax regime to refund of the net tax paid along with the return, if the tax for the relevant period is deposited in the prescribed manner. The decisive factor is that the tax is paid on behalf of the exempted unit and not the identity of the person who physically makes the deposit. Since the assessee had valid exemption under section 4A of the U.P. Trade Tax Act, 1948 and the net tax was deposited along with the return on its behalf, the statutory condition stood satisfied. The provision does not require personal payment by the dealer and the revenue cannot withhold refund on that ground alone.

Conclusion: The refund was admissible notwithstanding that the deposit was made by the agent, and the revisions failed.

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