VAT refund on self-assessment return cannot be withheld after assessment time limit expires; statutory interest follows.

Where the period for assessment or reassessment under the VAT regime had expired and no such proceeding was pending, a refund of unutilised input tax credit claimed in the self-assessment return could not be withheld. The refund was held maintainable, and the authorities were bound to release it together with statutory interest. The self-assessment return for the relevant year therefore entitled the taxpayer to payment of the refund within the stipulated time, and the claim could not be defeated merely because the refund arose from the return for that assessment year.

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Issues: Whether the petitioner was entitled to refund of the unutilized input tax credit for the assessment year 2008-2009 along with statutory interest after expiry of the time limit for assessment or reassessment under the VAT regime.

Analysis: The return had been filed for the relevant year and the prescribed period for assessment and reassessment had expired. No assessment or reassessment was pending when the refund claim was pursued. In these circumstances, the refund claimed in the self-assessment return could not be withheld, and the amount due had to be released with the statutory interest attached to such refund.

Conclusion: The refund claim was maintainable and the respondents were bound to grant the refund together with statutory interest.

Final Conclusion: The writ petition succeeded and the refund arising from the self-assessment return for the relevant year was directed to be paid within the stipulated time.

Ratio Decidendi: Where the period for assessment or reassessment has expired and no such proceeding is pending, a refund duly claimed in the self-assessment return cannot be withheld and must be released with statutory interest.

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