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2022 (11) TMI 432 - HC - VAT and Sales TaxValidity of assessment order - recovery of arrears of tax - applicable rate of tax - Ujala Supreme - Ujala Stiff & Shine - Section 25(1) of the KVAT Act - HELD THAT:- The Hon'ble Supreme Court in MP Agencie's case [2015 (3) TMI 787 - SUPREME COURT] held that the goods (Ujala Stiff and shine) remain in List A of Third Schedule which is taxable at 4%/5% and the inclusion of the goods in the residuary Entry 103 by the Revenue by no stretch of imagination can be made applicable. It was further held that if the assessee/appellant therein has paid the amount of VAT in excess of 4%/5% to the State Government, they will not be entitled to get refund of the said amount. Article 141 of the Constitution of India commands to follow the decision of the Hon'ble Supreme Court, if there is a law declared by the Hon'ble Supreme Court which obviously would be binding on all courts in India and the parties thereto. In the light of Articles 141 and 142, it is impermissible for the High Court to overrule the decision of the Apex Court on the ground that the Supreme Court has laid down the legal position without considering any other point. It is not only a matter of discipline for the High Courts in India, but also mandate of the Constitution as provided under Article 141, that the law declared by Supreme Court shall be binding on all courts within the territory of India. In this context, it is also relevant to look into Article 142 of Constitution of India. Admittedly, the petitioner has not challenged the judgment of this Court before the Apex Court but the respondents are not entitled to proceed with the recovery proceedings for recovery of the amount which is not authorized by law. When the Hon'ble Supreme Court has held that taxes paid by the assessee/appellant will not be refunded, it does not allow the Department to collect the differential taxes in the case of assessees who have not met the demands already made - It is trite that even though all statutory remedies are exhausted and held against the petitioner, it is legal to invoke powers under Article 226 to challenge the same as it vitiates the old law. The Exts.P3 and P4 revenue recovery notices demanding an amount of Rs.6,43,079/- is illegal and unenforceable and has to be set aside - petition allowed.
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