The court held that the assessee was entitled to refund of Rs....

The court held that the assessee was entitled to refund of Rs. 3,50,00,000/- deposited with the department, along with statutory interest and interest on refunds. The amount deposited was not tax but an excess amount, and the assessee was not obligated to file a revised return u/s 28 of the DVAT Act. The respondent could not retain the refund claim on grounds of limitation or voluntary deposit. The court observed that the state, having received and retained the money without right, was bound to refund it with interest. u/s 42, the assessee was entitled to interest from the date the refund became due u/s 38(3)(a)(ii). The impugned Refund Rejection Order was quashed, and the respondent was directed to refund the amount along with statutory interest and interest on refunds for the relevant quarters.