9911796707
TMI Blog1961 (10) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as the appellants, were registered as dealer in Orissa under the Orissa Sales Tax Act, 1947 from the quarters ending June 30, 1949. The Sales Tax officers treating the transfer of the materials used in the construction of the buildings, roads and bridges, as sale of goods, assessed the appellants to tax under the Orissa Sales Tax Act. The tax so assessed under the diverse orders of assessment was paid from time to time. For the quarters ending June 30, 1949, to March 31, 1954, the appellant paid Rs. 1,17,869-80 as tax and Rs. 2,917-11-0 as penalty. The following table sets out the tax and penalty paid to the Sales Tax Authorities for the twenty quarters:- Srl. No. Circle Name Registration No Tax paid Penalty pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d levying and collecting any sales tax from the appellant on works contracts; and (d) issue of appropriate writ or directions direting the State of Orissa and its Sales Tax Officers to refund the amount of sales tax and penalties realised from the appellant. Following the judgment of this Court in the State of Madras v. Gannon Dunkerly &, Co., Ltd.( [1959] S.C.R) which confirmed the decision of the Madras High Court in 5 S.T.C. 216, the High Court declared that the assessment of sales tax was not in accordance with law and directed that no steps, either by certificate proceedings or otherwise should be taken to realise the arrears of sales tax in respect of those contracts. The High Court also directed refund of tax paid, if recovery ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er applying in this behalf any amount of tax paid by such dealer in excess of the amount from him under this Act, either by cash payment or, at the option of the dealer, by deduction of such excess from the amount of tax due in respect of any other period: Provided that no claim to refund of any tax paid under this Act shall be allowed unless it is made within twenty-four months from the date on which the order of assessment was passed or within twelve months of the final order passed on appeal, revision, review or reference in respect of the order of assessment, whichever period is later." By the first paragraph, 8. 14 imposes an obligation upon the Collector to refund to a dealer any amount paid by such dealer in excess of the amount due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng refund of tax improperly or illegally collected'. If the power to legislate in respect of tax comprehends the power to legislate in respect of refund of tax improperly or illegally collected, imposition of restrictions on the exercise of the right to claim refund will not be beyond the competence of the Legislature. Granting refund of tax improperly or illegally collected and the restriction on the exercise of that right are both ancillary or subsidiary matters relating to the primary head of tax on sale of goods. The provisions of s.14 of the Act are therefore not ultra vires the State Legislature. It is not necessary to consider in this case whether s. 14 prescribes the only remedy for refund of tax unlawfully collected by the State. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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