Refund of excess tax paid under wrong head must be processed after challan verification, with interest and timely payment.

Petitioner paid tax under an incorrect head and is entitled to recovery of the excess amount together with up-to-date interest; respondents are directed to verify the annexed challans and, if excess payment is established and no statutory or procedural impediment exists, to refund the excess sum expeditiously. The refund process is to be completed preferably within eight weeks from verification. The operative effect is a verification-driven obligation on the revenue authority to process and pay the excess tax with applicable interest once the excess payment is confirmed.

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Issues: Whether the petitioner, having mistakenly deposited amounts under an incorrect head and subsequently paid under the correct head, is entitled to an expedited refund of the excess payment.

Analysis: The petition records that the petitioner deposited amounts under an incorrect head on 08.03.2024 and paid again under the correct head on 22.03.2024. The fact of an erroneous deposit under an incorrect head is undisputed on the record before the Court. The Revenue has not disputed liability for refund where an excess payment has been made and has accepted that the petition may be disposed of by directing the respondents to process the refund. The Court's direction confines the authority to verify the challans annexed to the petition, determine whether excess payment was made, and, if no impediment to refund exists, to refund the excess amount within a specified, time-bound period. The order also requires the authority to communicate reasons in writing if refund is not processed, preserving the petitioner's right to pursue statutory remedies thereafter.

Conclusion: The petition is disposed of by directing the respondents to verify the annexed challans and, if excess payment is found and no legal impediment exists, to refund the excess amount to the petitioner expeditiously and preferably within eight weeks; if refund is not processed, the authority shall record and communicate reasons in writing, leaving the petitioner free to pursue remedies in law.

Ratio Decidendi: Where an excess tax payment is shown to have been made by mistake under an incorrect head and no legal impediment to refund exists, the tax authority must verify the payment and process the refund in a time-bound manner, with written reasons if refund is refused.

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