A sum of money has been assessed as refundable to us under AP VAT relating to the year 2011-12. We have an earlier demand on us for th eassessment year 2002-2003 from the CTO, for which however, we have obtained a Stay order from the Hon'ble AP High Court. However, the DC is demanding a Bank Guarantee for release of the refund due to us. We find no justification for the demand for a bank guarantee in respect of an amount lawfully refundable to us. Can the learned members advice ? Case laws supporting our case would be welcome. Thanks in advance.
