Refund of excess appellate deposits under trade tax law is available when payments are not linked to admitted liability.

Amounts deposited during the pendency of an appeal under an interim court order, when not referable to any admitted tax liability, are treated as excess payment rather than tax due under section 29(1) of the U.P. Trade Tax Act, 1948. The provision requires refund of tax, fee or other sums paid in excess of the amount legally due, and amounts paid before final assessment cannot be retained as dues payable under the Act. On that basis, refund was held to be available for the sums paid under interim directions.

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Issues: Whether the amount deposited during the pendency of the appeals pursuant to an interim order, and not referable to any admitted tax liability, was refundable to the assessee under section 29(1) of the U. P. Trade Tax Act, 1948.

Analysis: The amount in question was deposited during the pendency of the appeals under the interim directions of the Court and was not linked to any admitted tax liability. Section 29(1) casts a duty on the assessing authority to refund tax, fee, or other dues paid in excess of the amount due under the Act. Amounts deposited over and above admitted liability, before final determination of assessment, cannot be treated as dues payable under the Act. The Court followed its earlier view that refund is available for sums paid during the pendency of appeal where they are not referable to admitted liability.

Conclusion: The assessee was entitled to refund of Rs. 6,73,264.

Ratio Decidendi: Amounts deposited during the pendency of appellate proceedings under an interim order, if not attributable to admitted tax liability, are refundable as excess payment under section 29(1) of the U. P. Trade Tax Act, 1948.

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