ITC refund verification must precede VAT refunds, with special audit and officer accountability for improper disbursement. Verification of ITC refund claims under the VAT system is required before refund is issued, and refund action must follow only after proper scrutiny of the relevant tax deposit and supporting records. The circular reiterates that officials should not delay verification and that both the assessing officer and the supervisory officer may be held responsible where revenue loss results from refund being granted without verification or proper examination. A special audit is ordered for specified refund files, along with revenue-protective action and proposals against erring officials within the prescribed timeline.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
ITC refund verification must precede VAT refunds, with special audit and officer accountability for improper disbursement.
Verification of ITC refund claims under the VAT system is required before refund is issued, and refund action must follow only after proper scrutiny of the relevant tax deposit and supporting records. The circular reiterates that officials should not delay verification and that both the assessing officer and the supervisory officer may be held responsible where revenue loss results from refund being granted without verification or proper examination. A special audit is ordered for specified refund files, along with revenue-protective action and proposals against erring officials within the prescribed timeline.
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