Expired assessment limitation bars withholding of self-assessment refund and triggers statutory interest on the refundable amount.

Where the limitation period for assessment and reassessment has expired and no such proceedings are pending, a refundable tax amount disclosed in a self-assessment return cannot be withheld. The Court noted that the refund arose from the annual VAT return and that the statutory period for assessment and reassessment had already lapsed. On that basis, the refund had to be released and statutory interest was payable on the refundable amount.

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Issues: Whether the petitioner was entitled to refund of tax along with statutory interest when the time limit for assessment and reassessment had expired and no assessment or reassessment proceedings were pending.

Analysis: The refund claim arose from the annual return for the relevant VAT year. The Court noted that, after filing of the annual return, the statutory period for assessment and reassessment had already expired and no assessment or reassessment was pending. In these circumstances, the refund due under the self-assessment return could not be withheld, and statutory interest was also payable on the refundable amount.

Conclusion: The petitioner was entitled to refund of Rs. 2,78,129/- with statutory interest.

Final Conclusion: The writ petition succeeded and the respondents were directed to release the refund within the stipulated time.

Ratio Decidendi: Where the limitation for assessment and reassessment has expired and no such proceedings are pending, a refundable tax amount disclosed in the return cannot be withheld and statutory interest follows on the refund due.

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