Excess VAT refund in self-assessment must be released with statutory interest when assessment time limits expire.

Where a dealer's self-assessment return under the Gujarat Value Added Tax Act shows excess input tax credit, and the periods for assessment and reassessment have expired without any order being passed, the refund cannot be withheld. The Gujarat High Court relied on earlier decisions recognising entitlement in such circumstances and directed release of the refund with statutory interest.

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Issues: Whether refund of excess tax declared in the self-assessment return under the Gujarat Value Added Tax Act, 2003 was payable along with statutory interest where the time limit for assessment and reassessment had expired and no assessment or reassessment order was passed.

Analysis: The applicants had claimed refund of excess input tax credit in the self-assessment return filed under section 33 of the Gujarat Value Added Tax Act, 2003. It was not disputed that the period for assessment and reassessment had expired and that no assessment or reassessment order had been made. The controversy was covered by earlier decisions of the Court which recognised entitlement to refund in such circumstances. On that basis, the Court directed release of the refund with statutory interest.

Conclusion: The refund was held payable, along with statutory interest, in favour of the assessee.

Ratio Decidendi: Where a dealer's self-assessment return shows excess tax refundable and the statutory period for assessment or reassessment has expired without any such order being passed, the refund cannot be withheld and must be granted with the applicable statutory interest.

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