Refund claims must be decided on available material, not delayed by assumed objections and uncertain records.

A pending refund claim cannot be left undecided for years while the department issues show cause notices on an assumed basis. Where the record showed uncertainty about old records and earlier proceedings, but no clear adjudication of the claim, the Court exercised writ jurisdiction to require a decision on the available and furnished material. The respondents were directed to decide the refund claim in accordance with law within two months.

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Issues: Whether the respondents were required to decide the pending refund claim in accordance with law instead of issuing show cause notices on an assumed basis.

Analysis: The refund application had remained undecided for years, and the record showed that the department issued show cause notices without first taking a clear decision on the claim. The reasons recorded in the notices reflected uncertainty about the availability of old records and the status of the earlier proceedings, but did not justify withholding a decision on the refund claim. In exercise of writ jurisdiction under Article 226 of the Constitution of India, the Court directed the respondents to adjudicate the refund claim on the available and furnished material within a fixed time.

Conclusion: The respondents were directed to decide the refund claim in accordance with law within two months, and the writ application was disposed of.

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