Power to withhold refund in certain cases

Power to withhold refund in certain cases.—

1. (1) Where an order giving rise to a refund is the subject matter of an appeal or other proceedings under this Act or where any other proceeding under this Act is pending, and the Commissioner is of the opinion that the grant of the refund is likely to adversely affect the revenue, the Commissioner may, after giving the dealer an opportunity of being heard, withhold the refund till such time as he may determine.
2. (2) Where a refund is withheld under sub-section (1), the dealer shall be entitled to interest as provided in section 38, if as a result of the appeal or proceeding, he becomes entitled to the refund.