Power of STO

[BAL KRISHAN GARG]

BRIEF FACTS : ORI.RET.FILED ON 27/5/08 FOR APRIL,08 CLAIMING REFUND RS.2,97,498 AND REVISED RET.FILED ON 3/11/08 CLAIMING 3,47,498 AS REFUND STO ADVISE TO GO TO DY.COMM.FOR OBJECTION U/S 74 AND OBJECTION FILED AND PASSED.BUT THE DY.COM.HAS MENTIONED IN ORDER ONLY ORI.RET.AND PASSED AS 50,000 TO BE ADJUSTED IN SUBSQUENT TAX PERIOD AGAINST A MISSED INVOICE IN ORIGINAL RET.NOW STO IS NOT CLEAR AS DY.COM.HAS NOT MENTIONED IN ORDER REL.TO REVISE RET.MY QUESTION IS WHETHER THE STO CAN GRANT REFUND 2,97,498 AS A REFUND AND ALLOW US TO SET OFF RS.50,000 IN ANOTHER TAX PERIOD . HERE STO IS NOT CLEAR ? PLEASE CLARIFY

[Ravi Chopra]

I express my views as common understanding as: Once the order is passed by the Dy. commissioner against an objection, it is not open to STO to amend the order and grant refund beyond the order. If the order in objection is not clear, you may get clarification from the authority for clear interpretation of the same.

AI Summary

Power to grant refund: STO may not override an objection order; obtain clarification before disbursing or adjusting. STO authority is limited by the Dy. Commissioner's objection order; the STO may not amend that order or grant refunds beyond its terms, and where the order's directions on adjustment or reallocation are unclear the STO should obtain clarification from the issuing authority before disbursing or setting off amounts.