Refund - Excess payment of tax - Sales tax

Last updated: 25 January 2009

Court :
IN THE SUPREME COURT OF INDIA

Brief :
Refund - Excess payment of tax - Sales tax - Tax paid at 1% on gold - Rate of tax reduced retrospectively - Refund of excess paid tax rejected on the ground that notification barring refund of tax collected at higher rate - Excess tax must be refunded - Doctrine of unjust enrichment not applicable as no averment that excess tax passed on to purchasers - Statutory provision providing for refund to prevail over notification - Condition on non-refund repealed by necessary implication as rate reduced with retrospective effect - State directed to refund excess amount with interest @ 10% instead of appellant refunding amount and claiming from State - Interest to be paid @ 15% if amount not refunded within four months - Section 44 of Kerala General Sales Tax Act, 1963. [paras 5, 19, 22, 23, 24, 27]

Citation :
2009 (233) E.L.T. 3 (S.C.) IN THE SUPREME COURT OF INDIA S.B. Sinha and Cyriac Joseph, JJ. CORPORATION BANK Versus SARASWATI ABHARANSALA