Refund of investigation deposits under Sabka Vishwas cannot be withheld when no legal adjustment was made.

Amounts deposited during investigation and left unadjusted under the Sabka Vishwas scheme were treated as refundable because they were not appropriated against the show cause notice, were not part of the admitted tax liability, and remained a revenue deposit with no legal basis for retention. The rejection of refund was set aside, and refund with interest was allowed. The stated principle is that money deposited during investigation, if not legally due and not adjusted against assessed tax dues, cannot be retained by the Revenue and must be refunded.

---

---

Issues: Whether the amount deposited during investigation and left unadjusted under the Sabka Vishwas scheme was refundable to the appellant, and whether the Department could retain it when it was not treated as a pre-deposit against the show cause notice.

Analysis: The amount of Rs.29,36,382/- was admittedly deposited by the appellant during investigation. It was not adjusted in the settlement process because the Designated Committee stated that the amount could not be verified and therefore was not treated as a pre-deposit. Since the amount remained unadjusted due to the Department's failure and was never part of the admitted tax liability, it continued to be a revenue deposit with the Department. In such circumstances, retention of the amount without legal authority was impermissible.

Conclusion: The refund was held admissible and the impugned rejection was set aside. The appellant succeeded in obtaining refund with interest.

Ratio Decidendi: Amounts deposited during investigation, if not appropriated or adjusted against assessed tax dues and not legally payable, cannot be retained by the Revenue and must be refunded.

---