Refund of State sales tax on declared goods depends on prior Central sales tax payment after retrospective amendment.

Refund of State sales tax on declared goods sold in inter-State trade became contingent on prior payment of Central sales tax after the retrospective amendment to section 15(b) of the Central Sales Tax Act, 1956, introduced by Central Act 61 of 1972 with effect from 1 October 1958. The amended language required tax to have been paid under the Central Act in respect of the same goods before reimbursement of State tax could arise. The earlier approach treating an inter-State sale alone as sufficient was no longer applicable. Accordingly, the assessee could not claim refund without satisfying the express statutory condition.

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Issues: Whether refund of tax levied under the State sales tax law on declared goods sold in inter-State trade was contingent upon prior payment of Central sales tax, and whether the assessee could claim refund without satisfying that condition.

Analysis: The right to reimbursement of State tax on declared goods was considered in the light of the amended section 15(b) of the Central Sales Tax Act, 1956, as introduced by Central Act 61 of 1972 with retrospective effect from 1 October 1958. Under the amended provision, refund or reimbursement of the State tax accrued only where tax had been paid under the Central Act in respect of the inter-State sale of the same goods. The earlier view that mere inter-State sale was sufficient to trigger refund could not be applied after the amendment, because the statutory language now expressly added payment of Central sales tax as a further condition.

Conclusion: The assessee was not entitled to refund without having paid Central sales tax on the inter-State sales, and the objection to the refund claim failed.

Ratio Decidendi: Where a statute is retrospectively amended to make refund of State tax on declared goods conditional upon prior payment of Central sales tax, the refund right arises only on satisfaction of that express statutory condition.

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