Section 39 in Daman and Diu Value Added Tax Regulation, 2005
39. Power to withhold refund in certain cases.
(1)Where a person is entitled to a refund and any proceeding under this Regulation is pending against him, or a notice under section 58 had been issued and assessment or reassessment in pursuance of the notice is pending and the Commissioner is of the opinion that payment of such refund is likely to adversely affect the revenue and that it may not be possible to recover the amount later, the Commissioner may for reasons to be recorded in writing, either obtain a security equal to the amount to be refunded to the person or withhold the refund till such time the proceeding or the assessment or re-assessment has been concluded or made.(2)Where a refund is withheld under sub-section (1), the person shall be entitled to interest as provided under sub-section (1) of section 42 if, as a result of the appeal, or any other proceeding he becomes entitled to the refund.
