Withholding of refundable VAT contravenes Section 36 of VAT Act

Dharti Quarry Works Vs State of Gujarat (Gujarat High Court) We are of the view that there is no legal justification for withholding the amount referred to above, which is otherwise refundable to the writ applicants in passing of any assessment orders for the relevant assessment years. It could be said that such withholding of the refund is contrary to the provisions of the Section 36 of the VAT Act, 2003. We may refer to and rely upon the decision of this Court rendered in the case of Shilpa Industries Vs. State of Gujarat [SCA/540/2020], decided on 22.01.2020. We quote the relevant obser...