1964 (1) TMI 33 - SC - VAT and Sales Tax

Whether the relief of repayment has to be sought by the taxpayer by an action in a civil court?

Whether such an order can be made by the High Court in exercise of its jurisdiction under Article 226 of the Constitution?

Held that:- Appeal allowed. The period of limitation prescribed for recovery of money paid by mistake under the Limitation Act is three years from the date when the mistake is known. If the mistake was known in these cases on or shortly after January 17, 1956, the delay in making these applications should be considered unreasonable. If, on the other hand, as Mr. Andley seems to argue, the mistake was discovered much later, this would be a controversial fact which cannot conveniently be decided in writ proceedings. In either view of the matter we are of opinion the orders for refund made by the High Court in these seven cases cannot be sustained.