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1998 (8) TMI 93 - SC - VAT and Sales TaxIssuance of a writ of mandamus to declare the action of the respondents in demanding and collecting sales tax from them on the royalty and extraction charges paid for the supply of bamboo and hardwood to them from the forest for the period 1978-79 onwards as illegal, null and void and for a consequential relief of refund of the taxes so collected from them. Held that:- The High Court was not right to held that the transactions in question were not exigible to tax. The refund was, however, denied on the ground that the appellants must be deemed to have passed on the liability to the consumer in the light of the case Titaghur Paper Mills Co. Ltd.[1985 (3) TMI 226 - SUPREME COURT OF INDIA] put forward by the Government Pleader. The appellants have reimbursed a tax liability which was on the Forest Department and the appellants have consumed the goods for manufacturing paperboards, etc. Therefore, the question of the appellants passing on the tax liability to the consumer, on the facts of this case, would not arise. Consequently, the appellants are entitled for refund of the tax collected from them, not for the entire period but for the period commencing three years prior to the date of filing of the writ petition. Appeal allowed.
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