1994 (4) TMI 361

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rders of assessment dated August 2, 1991, petitioner was found entitled to refund of Rs. 16,286.30 and Rs. 14,51,919 respectively. Refund applications were filed on August 31, 1991 and the amounts in question were paid to petitioner on April 7, 1992, vide refund payment order-cum-payment advice Nos. 1351 and 1353 of the said date. After receipt of refund vouchers, Sales Tax Officer, Rourkela I Circle (opposite party No. 3) was moved by petitioner for payment of interest. Interest was claimed on the total amount of Rs. 14,68,226 in terms of section 14-C of the Act read with rule 40 of the Rules, on the ground that payment having been made beyond 90 days it was entitled to interest at the rate of 18 per cent for the first ninety days and at t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act the claim and grant of refund is a proceeding and because several records are to be put together before merit of a claim is properly appreciated and such records are available not in one office but sometimes in different offices and in connection with different proceedings, to get them together as and when required is not possible. Moreover, delegation of power to refund has been made to different authorities by stipulating financial limitations. The Commercial Tax Officer can refund up to Rs. 5,000, the ACCT up to Rs. 10,000, the Additional C.C.T. up to Rs. 20,000 and the Commissioner can grant refund for any amount without restriction. This scheme of delegation is also causing delay. It may, however, be seen that the passing of the p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n per cent per annum for the first ninety days and thereafter at the rate of twenty-four per cent per annum, with effect from the date of expiry of the period specified above. 14-D. Power to withhold refund in certain cases.-Where an order giving rise to a refund is subject-matter of an appeal or further proceeding under this Act, the Commissioner may, if he is of the opinion that the grant of refund is likely to adversely affect the revenue, withhold the refund till such time as he deems proper." A bare reading of the provisions shows that the conclusions of the Additional Commissioner are frivolous and utterly fallacious. Section 14-D has no application to the facts of the case at hand, because no order giving rise to the refund was....