No estoppel against a taxing statute where an unauthorized departmental letter cannot defeat sales tax liability.

A departmental letter issued by a subordinate tax officer could not create an enforceable rebate or prevent levy of sales tax where the Hyderabad General Sales Tax Act contained no statutory authority for such relief. A mistaken or unauthorized departmental interpretation cannot override the taxing statute, and a dealer cannot rely on it to defeat a statutory tax liability. The settled principle that there is no estoppel against a statute applied, especially where the law imposes a positive duty to pay tax and public revenue cannot be waived by an unauthorized administrative communication. The tax liability therefore remained enforceable notwithstanding the letter.

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Issues: Whether a departmental letter issued by a subordinate tax could create an enforceable rebate or estoppel against levy of sales tax under the Hyderabad General Sales Tax Act.

Analysis: The letter relied upon did not have statutory authority, as the Act contained no provision empowering the Deputy Commissioner or the Commissioner to grant rebate or to bind the Government by advice inconsistent with the taxing provisions. A mistaken interpretation by a subordinate officer cannot override the statute, and a dealer cannot rely on such a communication to defeat a statutory liability. The Court applied the settled principle that there is no estoppel against a statute, particularly where the law imposes a positive duty to pay tax and public revenue cannot be released by an unauthorized departmental act.

Conclusion: The departmental letter did not preclude collection of sales tax, and the plea of estoppel failed against the taxing statute.

Final Conclusion: The revision failed because the tax liability remained enforceable notwithstanding the unauthorized departmental communication.

Ratio Decidendi: An unauthorized representation or mistaken interpretation by a government officer cannot create estoppel against the operation of a taxing statute or release a dealer from a statutory tax liability.

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