Disputed tax refund claims based on collection and deposit of tax must be decided by the assessing authority, not writ court.

A disputed refund claim for alleged excess trade tax on wheat could not be finally decided in writ jurisdiction because the pleadings raised a factual controversy on whether tax had been collected from the petitioners and, if so, whether it had been deposited with the department. The Court held that if the tax was collected but not deposited, a refund could be claimed; if it had been deposited, refund had to be pursued from the department. The petitioners were therefore directed to approach the assessing authority for adjudication of the disputed facts, with liberty to seek refund if the claim was established.

---

---

Issues: Whether the petitioners were entitled in writ jurisdiction to refund of alleged excess trade tax collected on wheat purchased from the Food Corporation of India, and whether the disputed question as to collection and deposit of tax had to be decided by the assessing authority.

Analysis: The dispute turned on whether trade tax had in fact been realised by the Food Corporation of India on wheat procured within Uttar Pradesh and, if so, whether the amount had been deposited with the trade tax department. The Court held that if tax had been collected from the petitioners on such wheat and had not been deposited with the department, refund could be claimed. If the amount had been deposited, the petitioners were to seek refund from the department. Since the pleadings disclosed a factual controversy on these matters, the Court held that the issue could not be finally adjudicated in writ jurisdiction and had to be determined by the assessing authority on the basis of an application by the petitioners.

Conclusion: The petitioners were not granted direct refund in writ proceedings, but were given liberty to approach the assessing authority for decision on the disputed refund claim.

Final Conclusion: The writ petition was disposed of by directing adjudication of the refund claim by the assessing authority, leaving the petitioners to obtain refund if the factual issue was decided in their favour.

Ratio Decidendi: A disputed question of fact as to collection and deposit of tax, especially in a refund claim, is not to be decided in writ jurisdiction and must be examined by the competent assessing authority.

---