Illegal sales tax levy and refund entitlement: refund cannot be denied after the levy is quashed, with statutory interest payable.

Where the Sales Tax Tribunal had already quashed the levy of sales tax and interest as illegal, the Assessing Authority could not refuse refund by re-examining admissibility or treating the Tribunal's decision as open to challenge. The statutory refund mechanism under section 43 of the Haryana General Sales Tax Act, 1973, read with rule 35(b), required repayment of the tax and interest wrongly collected, together with statutory interest on the refund. The refusal of refund was therefore set aside, and the assessee's entitlement to refund with interest was affirmed.

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Issues: Whether the Assessing Authority could refuse refund of sales tax and interest already held to be illegally levied by the Sales Tax Tribunal, and whether the assessee was entitled to refund with interest.

Analysis: The Tribunal had already quashed the subordinate authorities' orders levying sales tax and interest. In that situation, the Assessing Authority could not sit in judgment over the Tribunal's decision or deny the refund on the ground that it was not admissible. The refund claim had to be granted in accordance with the statutory provision for interest on refund under section 43 of the Haryana General Sales Tax Act, 1973 read with rule 35(b) framed thereunder.

Conclusion: The refusal of refund was set aside, and the assessee was held entitled to refund of the tax and interest illegally collected, together with statutory interest.

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