1986 (4) TMI 50 - SUPREME COURT

Whether there is any prohibition prohibiting the assessee from getting the refund as claimed for?

Held that:- The assessee filed revision before the Court of Additional judge (Revisions) rejecting the claim for refund. If the law of limitation is applicable, then section 5 of the Limitation Act is also applicable and it is apparent that the application originally was made within time within two years as contained in the proviso. Article 96 of the First Schedule of the Limitation Act, 1908, prescribes a period of limitation of three years from the date when the mistake becomes known for filing a suit. If that principle is also kept in mind, then, when the judgment came to be known in May, 1954, in our opinion, when the assessee had made an application in 1955, it was not beyond time.

Where indubitably there is in the dealer legal title to get the money refunded and where the dealer is not guilty of any laches and where there is no specific prohibition against refund, one should not get entangled in the cobweb of procedures but do substantial justice. The above requirements in this case, in our opinion, have been satisfied and, therefore, we affirm. the direction of the Additional judge (Revisions), Sales Tax, for refund of the amount to the dealer and affirm the High Court's judgment on this basis. Appeal dismissed.