Withholding of refunds Sec.38 :

Refund can be withheld in the following circumstances:

o If the registered dealer has not submitted return, till he files the return.

o The proper officer can also deduct unpaid taxes if any of the dealer.

o Commissioner/Board can withhold refund, if, the Order of Refund is under appeal and he is of the opinion that grant of such refund will adversely affect revenue.