Section 51(6) in The Maharashtra Value Added Tax Act, 2002
(6)(a)If before the grant of refund under this section, a notice for assessment covering the period to which the return relates is issued or if any proceedings under sub-section (3) or sub-section (4) of section 64 are initiated in respect of the period to which the return relates, then,-(i)if the dealer has not furnished a bank guarantee then no refund under this section shall be granted; and(ii)if the dealer has furnished a bank guarantee then an amount equal to the guaranteed amount shall be refunded.(b)If it is found as a result of any order passed under this Act that the refund granted under this section is in excess of the refund, if any, determined as per the said order, then the excess amount shall be recovered as if it is an amount of tax due from the dealer and the dealer shall be liable to pay simple interest at the prescribed rate per month or part thereof from the date of the grant of refund.
