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2014 (3) TMI 737 - SUPREME COURTRefund of the excess tax paid - reduction of rate of tax with retrospective effect - What is the meaning to be assigned to and scope of the expression "tax, if any, already collected at the higher rate shall be paid over to the government and tax, if any, already paid shall not be refunded" - Held that:- The plain reading of the notification would make it apparent that the State Government has expressly made it clear that if, for any reason, the assessee had collected and had paid the higher rate of tax to the State Government the same shall not be refunded - The prohibition of refund is only in respect of the tax collected at the higher rate by the dealer and remitted to the State Government - The intention of the State in issuing the said notification has been reflected in the clarification issued by the CC Taxes, Thiruvananthpuram in Civil Appeal No. 1827 of 2004 - It states that the notification is based on the intention of the State that retrospective operation given to the notification must not result in outflow of money from the Government exchequer - Having paid the higher rate of tax to the State the assessee is not entitled for refund of the aforesaid amount - We say so for the reason that the rate of tax at the relevant point of time was 8% - The appellant had paid that amount - By amendment, though the rate of tax was reduced to 4%, the assessee cannot take advantage of the same and gain undue monetary advantage not due to him - Assessing authority was justified in passing the order of rectification rectifying his earlier order wherein he had ordered for refund/adjustment of the excess tax paid for the future demands - The High Court has rightly concurred with the view of the assessing authority and rejected the claim of the assessee – Decided against assessee.
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