Retention of Refund Claim Cannot Be Justified Merely Because It Was Voluntarily Deposited by Taxpayer: Delhi High Court

In a recent judgment, the Delhi High Court addressed a crucial case involving Ashok Leyland Ltd regarding the Delhi Value Added Tax (DVAT) Act. This ruling focused on the company’s claim for a refund of Rs. 3,50,00,000, which had been deposited with the tax authorities. Case Background Ashok Leyland Ltd had deposited this substantial amount with the Delhi VAT Department as a precautionary measure against a potential tax demand arising…