Tax refund under a rule-based statute cannot be granted until prescribed conditions and circumstances are formally framed.

Section 37-A(2) of the Assam Sales Tax Act, 1947 was held not to be self-executing because any drawback, set-off or refund depended on rules prescribing the relevant circumstances and conditions. The court reasoned that, in a taxing statute, the power to grant relief cannot be exercised by supplying omissions or ignoring the rule-making requirement. As no rules had been framed, no authority could lawfully grant the claimed tax relief. The refund claim therefore failed, and the denial of relief was upheld until the prescribed rules are made.

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Issues: Whether the petitioner was entitled to remission, drawback, set-off or refund under section 37-A(2) of the Assam Sales Tax Act, 1947 in the absence of rules prescribing the circumstances and conditions for grant of such relief.

Analysis: Section 37-A(2) empowered the State Government to provide by rules for drawback, set-off or refund only in such circumstances and subject to such conditions as may be prescribed. The provision was therefore not self-executing and its operation depended upon rule-making. The tax relief contemplated by the sub-section could be granted only after the prescribed rules were framed, because the legislative scheme intentionally controlled the exercise of power by requiring specification of the circumstances and conditions. In a taxing statute, the court could not supply omissions, rewrite the provision, or ignore the rule-making requirement. Since no rules had been framed, no authority could lawfully grant the claimed relief.

Conclusion: The petitioner was not entitled to any relief under section 37-A(2) of the Assam Sales Tax Act, 1947 until rules were framed; the claim for refund failed.

Final Conclusion: The writ petition was dismissed, and the denial of refund was upheld because the statutory preconditions for exercising the refund power had not been satisfied.

Ratio Decidendi: Where a taxing provision authorises refund, drawback or set-off only by rules prescribing the relevant circumstances and conditions, no such relief can be granted until those rules are framed.

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