Power to withhold refund in certain cases

Power to withhold refund in certain cases.

65.

1. (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 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.
2. (2) Where a refund is withheld under sub-section (1), the State Government shall pay interest in accordance with the provisions of the last preceding section on the