TMI Blog2012 (4) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... remand the matter to the assessing authority to re-consider the claim of the respondent for refund after giving an opportunity to the respondent to establish that tax paid on raw material is not passed on to the purchasers by including in the product price. - S.T. Rev. Nos. 138, 139,140,141,142 of 2010 - - - Dated:- 9-4-2012 - RAMACHANDRAN NAIR C.N. AND BABU MATHEW P. JOSEPH, JJ. For the Appellant : Sojan James, Government Pleader,. For the respondent. E.K. Nandakumar, (SR.), A.K. Jayasankar Nambiar, K. John Mathai, P. Benny Thomas and P. Gopinath The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J.- Heard the Special Government Pleader for the State and counsel appearing for the respondent-assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant of refund of tax paid. Even though, the first appeal was dismissed, the Tribunal on second appeal relying on the principles laid down by the Supreme Court in the case of Corporation Bank v. Saraswati Abharansala reported in [2009] 19 VST 84 (SC) ordered refund of the tax remitted by the respondent. It is against these orders, the revisions are filed by the State for the years 1999-2000, 2000-01, 2002-03, 2003-04 and 200405. The Special Government Pleader appearing for the State produced a copy of S.R.O. No. 123/2010 dated February 2, 2010 issued by the State subsequently with retrospective effect from April 1, 1998 to October 9, 2001, reaffirming the same view as in S.R.O. No. 695/2003. According to the Government Pleader, this Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out including tax component on raw material. However, if respondent is engaged in any other way of recouping tax on raw material, other than inclusion in the product price, they could be given an opportunity to establish before the officer by production of profit and loss account, balance sheet and pattern of recovery of tax on raw material. Law settled by various decisions of the Supreme Court such as Mafatlal Industries Ltd. v. Union of India [1998] 111 STC 467 (SC) and State of Maharashtra v. Swanstone Multiplex Cinema (P) Ltd. [2009] 24 VST 552 (SC); [2010] 18 KTR 453 (SC) is to the effect that refund of tax should not be granted if it results in unjust enrichment. In other words, if tax paid forms part of price and is passed on to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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