Finality of tax orders bars withholding refund; belated review and remand-based objections cannot defeat statutory interest.

Where reassessment and appellate orders have attained finality and no remand has been ordered, refund under the Haryana VAT Act cannot be withheld on the basis of a belated review or a provision applicable only to remanded proceedings. The High Court treated the Department's attempt to modify the settled position after the one-year limit under Section 35 as time-barred, and held that Section 18 on completion of remanded proceedings did not apply. On that basis, the refund claim under Section 20(5) was maintainable, and the petitioner was entitled to refund with statutory interest.

---

---

Issues: Whether the petitioner was entitled to refund of the tax amount with statutory interest after the reassessment and appellate orders had attained finality, and whether the Department could withhold refund on the basis of a belated review or alleged need for remand.

Analysis: The reassessment demand had been reduced in appeal and the Tribunal had later held that cross-examination of the third party was warranted, but the High Court had dismissed the State's appeal without remanding the matter to the Assessing Authority. The Court held that the orders upto the appellate stage had attained finality and that the Department's attempt to seek modification or review after a long delay was barred by the one-year limitation under Section 35 of the Haryana VAT Act, 2003. Section 18 of the Haryana VAT Act, 2003, which concerns completion of remanded proceedings within time, was held inapplicable because the case had not been remanded. In these circumstances, the refund claim under Section 20(5) could not be denied.

Conclusion: The petitioner was entitled to refund of Rs. 17,06,322/- with statutory interest, and the objections based on limitation and pending review failed.

Ratio Decidendi: Where the demand order has attained finality and no remand has been ordered, refund cannot be withheld on the basis of an untimely review or by invoking provisions applicable only to remanded proceedings.

---