Statutory refund limitation is valid where tax law permits refund claims only within the prescribed time limit.

The power to tax includes authority to regulate ancillary matters such as refund, and a statutory time limit for claiming refund falls within that field. Section 14 of the Orissa Sales Tax Act, 1947 was therefore within legislative competence and not ultra vires. A writ petition under Article 226 may be used to seek refund of tax unlawfully collected, but the relief remains subject to the statutory conditions attached to the refund right. The claimant cannot bypass the limitation prescribed by the Legislature, so refund in writ proceedings was confined to the extent permitted by section 14.

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Issues: (i) Whether the limitation and restriction on refund contained in section 14 of the Orissa Sales Tax Act, 1947 was beyond the legislative competence of the State Legislature. (ii) Whether a petition under Article 226 of the Constitution of India could secure refund of tax illegally collected without being confined to the statutory restriction in section 14.

Issue (i): Whether the limitation and restriction on refund contained in section 14 of the Orissa Sales Tax Act, 1947 was beyond the legislative competence of the State Legislature.

Analysis: The power to impose a tax includes the power to prescribe machinery for collection and to regulate ancillary matters, including refund of tax improperly or illegally collected. A restriction upon the time within which refund may be claimed is part of that ancillary field and does not take the provision outside legislative competence.

Conclusion: Section 14 was not ultra vires the State Legislature.

Issue (ii): Whether a petition under Article 226 of the Constitution of India could secure refund of tax illegally collected without being confined to the statutory restriction in section 14.

Analysis: A writ petition may lie to enforce a statutory duty to refund tax unlawfully collected, but the relief granted in such proceedings remains subject to the statutory conditions attached to the right. The claimant cannot invoke the statutory right while ignoring the limitation imposed by the Legislature.

Conclusion: Refund in writ proceedings was confined to the statutory limitation under section 14.

Final Conclusion: The statutory refund provision was upheld, and the refund claim was allowed only to the extent permitted by the limitation in section 14, with the remaining claim failing.

Ratio Decidendi: The power to legislate on taxation includes authority to regulate ancillary matters such as refund and to impose reasonable statutory conditions on the enforcement of that refund right, including limitation periods.

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