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54. Power
to withhold refund in certain cases:-
(1)
Where an order giving rise to a refund is the subject-matter
of an appeal or further proceeding or where any other proceeding under this Act
is pending, and the authority competent to grant such refund is of the opinion
that the grant of the refund is likely to adversely affect the revenue, such
authority may, with the previous approval of the Commissioner, withhold the
refund till such time as the Commissioner may determine:
Provided that, the Commissioner shall accord his approval to the withholding of
the refund only if he is of the opinion that on the conclusion of such appeal,
further proceedings or other proceedings, if it becomes necessary to recover the
amount of refund in full or in part, then it may not be otherwise practicable or
possible so to do in any reasonable period of time:
Provided further that, no order withholding the refund shall be made after the
expiry of ninety days from the date of service of the order giving rise to the
said refund.
(2) Where a refund is withheld under sub-section (1), the State
Government shall pay interest in accordance with the provisions of section 53 on
the amount of refund ultimately determined to be due to the person as a result
of the appeal or further proceeding, or any other proceeding for the period from
the date immediately following the expiry of ninety days from the date of
service of the order referred to in sub-section (1) to the date of refund.
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