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2021 (2) TMI 971 - GUJARAT HIGH COURTRejection of extension of time for payment of the last installment of Tax under Income Disclosure Scheme, 2016 (IDS) - Seeking to allow extension of time, for payment of the last installment of Tax under Income Disclosure Scheme, 2016 - seeking to direct to refund the tax amount paid in the first and second installment of IDS, 2016 - whether the writ applicant is entitled to get the amount already deposited by him under the scheme adjusted in any manner so far as his tax liability is concerned? HELD THAT:- It is settled law that an application under Art. 226 of the Constitution would lie for enforcing the obligation of the State to refund and/or return the money-collected towards an illegal tax or duty. Ever since the decision in the case of THE SALES TAX OFFICER, BANARAS AND OTHERS VERSUS KANHAIYA LAL MAKUND LAL SARAF AND OTHERS [1958 (9) TMI 57 - SUPREME COURT], it has been consistently held that the payment towards tax or duty which is without authority of law is a payment made under mistake within the meaning of S. 72 of the Indian Contract Act. Section 72 is based on equitable principles. Therefore, by claiming to retain the tax which has been collected without the authority of law, the Government cannot enrich itself and it is liable to make restitution to the person who had made payment under any mistake or under coercion. In the case on hand, the payment with respect to the first two installments were made in accordance with the scheme of 2016. It is the failure on the part of the writ applicant to deposit the amount of the third installment in time that created the trouble for him. The scheme, more particularly, the Clause 191 thereof specifically provides that any amount of tax paid under clause 184 in pursuance of a declaration made under clause 183 shall not be refundable. The case on hand is not one of illegal recovery of tax by the Revenue, or in other words, any tax paid by the assessee under mistake of law. This is a case of default on the part of the writ applicant as an assessee, and the consequences of the default are itself provided under the scheme in the form of Clause 191. Thus, no case is made out by the writ applicant for interference - application dismissed.
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