Article 226 refund relief for sales tax collections refused where excess collections were forfeitable under the sales tax law

Sales tax collections treated as part of turnover under sections 30-B and 30-C of the Andhra Pradesh General Sales Tax Act were sought to be refunded in Article 226 proceedings, but the Court noted that section 30-C(1) contemplated forfeiture of amounts collected in excess of tax payable. Because the disputed sums had already been remitted to the State and the matter arose in writ jurisdiction, refund relief was declined and the broader referred question was not examined.

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Issues: Whether, in proceedings under Article 226, relief could be granted for refund of sales tax collections treated as part of turnover for the period during which sections 30-B and 30-C of the Andhra Pradesh General Sales Tax Act and Rules, 1957 were in force.

Analysis: The dispute concerned collections made by the appellant from customers on the footing that sales tax formed part of turnover, and the corresponding amounts had already been remitted to the State. The Court noted that section 30-C(1) contemplated forfeiture of amounts collected in excess of the tax payable. In these circumstances, and given the nature of the writ proceedings, the Court declined to grant the refund relief sought and also declined to examine the broader question that had been referred for consideration.

Conclusion: Relief under Article 226 was not granted, and the appeal failed.

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