TMI Blog1967 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Madras General Sales Tax Act. As the petitioner was carrying on business in cotton, he was assessed under the local Act and the point for levy of sales tax is the last purchase if it is within the State. As cotton is declared goods under the Central Sales Tax Act, if the petitioner sells his cotton outside the State, he will again be assessed. In order to avoid injustice, section 4 of the Madras General Sales Tax Act provided by a proviso that an assessee would be entitled to a refund on the tax so levied under the Central Sales Tax Act; that is if he has paid the tax at the last purchase point and if he sells cotton outside the State and if tax is levied on that sale, he would be entitled to refund of the tax. In this case, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are "the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be prescribed." The local authority framed rules under the Act. Rule 23(3)(i) which is relevant for our purpose states that such an application for refund should not be made more than three months from the date on which the movement of the goods from this State to any other State commenced. The contention of the learned counsel for the petitioner is that such period of limitation prescribed in the rule is ultra vires, illegal and not binding on him. In support of this contention, the learned counsel has cited the decision in Solar Works v. Employees' State Insurance CorporationI.L.R. (1964) 1 Mad. 906; (1964) 2 M.L.J. 223., where at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim refund after he actually paid the taxes. it is enough for him to have claimed a refund as soon as the tax is levied under the Act. The words used in the proviso are "tax so levied shall be refunded". But there was a subsequent amendment by Act 6 of 1963 and section 4-A was introduced to this effect: "Tax so levied and collected under section 4 shall be refunded" and the rules were suitably amended. The importance of collection came into prominence only when the new provision came into force on Ist April, 1963. At the time of the application for refund by the petitioner, it was not necessary for him to have paid the tax and then claimed the refund. In the instant case, on the dates when the petitioner filed his applications for refund, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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