Refund limitation for declared goods upheld where the statutory power to prescribe conditions included a twelve-month filing period.

Rule 42-A of the Orissa Sales Tax Rules, 1947 was analysed as a valid prescription for refund claims on tax paid on declared goods sold in inter-State trade or commerce. The court treated the statutory phrase "conditions" in section 15(b) of the Central Sales Tax Act, 1956 and section 14-B of the Orissa Sales Tax Act, 1947 as wide enough to include a time-limit, even though "manner" did not extend to limitation. As the rule-making power also covered the person, manner and conditions for refund, the twelve-month filing requirement was upheld and a refund claim filed after that period was barred by limitation.

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Issues: Whether rule 42-A of the Orissa Sales Tax Rules, 1947, prescribing a period of twelve months for claiming refund of tax on declared goods sold in the course of inter-State trade or commerce, was ultra vires the enabling provisions, and whether the refund application filed beyond that period was barred by limitation.

Analysis: Section 15(b) of the Central Sales Tax Act, 1956 and section 14-B of the Orissa Sales Tax Act, 1947 permit refund of tax levied on declared goods sold in inter-State trade or commerce in such manner and subject to such conditions as may be prescribed. The expression "manner" was not treated as covering limitation, but the expression "conditions" was held to be wide enough to include a time-limit for making the refund claim. Section 29(2)(nn) of the Orissa Sales Tax Act, 1947 empowered the rule-making authority to prescribe the person, manner and conditions subject to which refund may be made, and rule 42-A was made in exercise of that power. The rule expressly required the refund claim to be submitted within twelve months from the date of payment of tax.

Conclusion: Rule 42-A was held to be intra vires, and the refund application filed beyond twelve months was barred by limitation.

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