the refunds under Section 38. Whenever the department seeks to obtain necessary information under Section 59 of the Act, it must take steps within the time limit envisaged under the Act. Further, the refund amount can be adjusted only when an enforceable demand in the nature of tax or duty is pending against the assessee. The department does not have any legal right or justification to retain the amount beyond the time limit prescribed under Section 38.4 In the facts of the present case, it was held that the mandate of the Act has not been followed and hence the adjustment order is not maintainable.5 5. We have heard the learned ASG for the department and Mr. Rajesh Jain, learned counsel for the respondent-assessee. The learned ASG has submitted that the timelines specified in Section 3 2023 SCC OnLine Del 5201. 4 Impugned judgment, para 10. 5 ibid, para 11. 338(3) are only to ensure that interest is paid if the refund is delayed beyond the statutorily prescribed period. However, he