WP(C) 1684/2009 BEFORE THE HON BLE MR. JUSTICE HRISHIKESH ROY The petitioner No.1 is a registered dealer under the Assam Value Added Tax Act, 2003 (hereinafter referred to as ’the Vat Act’) and is aggrieved by the demand o f additional security in accordance with the provisions of Section 25 of the VAT Act and under Rule 14 of the Assam Value Added Tax Rules, 2005 (hereinafter ref erred to as ’the Rules’). 2. It is contended by Ms. M M Kotoky, learned counsel that for the assessme nt made for the year 1007-2008, excess additional security amounting to Rs.32,49 ,336/- (Rupees thirty two lakhs forty nine thousands three hundreds and thirty s ix) was recovered from the dealer and when this amount is still retained by the Department, there is no justification for demanding additional security from the registered dealer. 3. Mr. R Dubey, learned standing counsel on the other hand submits that sec urity is levied from a dealer for timely realization of the payable tax and for proper custody and use of the forms and additional security is required to be fu rnished by a dealer in various forms, prescribed under Rule 14 of the Rules. Mr. Dubey further submits that although some early security deposit of the dealer m ay have remained with the Department, the said amount is not permitted to be adj usted as an additional security and the dealer can formally apply for refund of such excess payment as provided under Section 50 of the VAT Act and the responde nts in that event can consider refund to the dealers. 4. In view of above, Ms. Kotoky, learned counsel submits that the petitione rs is agreeable to apply for refund of the excess additional security retained b y the Department for the previous year and direction may be given for expeditiou s consideration of their refund application so that the dealer may utilize the r efunded amount, for furnishing the demanded additional security. Mr. Dubey does not oppose early consideration of the intended refund application. 5. In view of the agreement amongst the learned counsels on the above issue , the dealer is permitted to apply for refund of the excess additional security for the previous year, kept in deposit with the Department. On receipt thereof t he competent assessing officer would consider the refund application expeditious ly and preferably within 4 weeks from the date of receipt. Until a decision is t aken on the refund application, the Department is restrained from using coercive measures to realise additional security from the dealer. 6. The case is disposed of with the above order.