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1989 (7) TMI 99 - SC - VAT and Sales TaxWhether, in the application under article 226 of the Constitution, the court should have refused refund on the ground of laches and delay? Held that:- In the instant case, though the Madhya Pradesh High Court declared the collection of 71/2 per cent. illegal the Government was still charging it saying that the matter was under consideration of the Government. The final decision of the Government as stated in the letter dated October 17, 1961, was purely an internal communication of the Government, copy whereof was never communicated to the appellants or other liquor contractors. There could, therefore, be no question of the limitation starting from that date. Even with reasonable diligence, as envisaged in section 17(1)(c) of the Limitation Act, the appellants would have taken at least a week to know about it. Mr. Rana has fairly stated that there was nothing on record to show that the appellants knew about this letter on October 17, 1961, itself or within a reasonable time thereafter. We are inclined to allow at least a week to the appellants under the above provision. Again Mr. Rana has not been in a position to show that the statement of the appellants that they knew about the mistake in or about September, 1962, whereafter they issued the notice under section 80 of the Code of Civil Procedure was untrue. This statement has not been shown to be false. Thus knowledge one week after the letter dated October 17, 1961, or in or about September, 1962, the suit would be within the period of limitation under article 113 of the Schedule to the Limitation Act, 1963. In the result, we set aside the judgment of the High Court, allow the appeal and remand the suit.
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