Refund limitation under sales tax law inapplicable where department itself ordered adjustment and balance refund with interest.

Section 33A of the Andhra Pradesh General Sales Tax Act, 1957 was held inapplicable where the department had not rejected refund outright but had itself proposed adjustment of the excess tax against future dues and directed a small balance refund through the treasury. On those facts, no separate refund application within three years was required for the amount already directed to be adjusted or refunded, because the assessee was not seeking a fresh refund claim. The limitation provision therefore did not bar relief, and the assessee was entitled to adjustment or refund of the excess amount together with interest.

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Issues: Whether Section 33A of the Andhra Pradesh General Sales Tax Act, 1957 applied so as to require a formal refund application within three years before adjustment or refund of the excess tax amount.

Analysis: The communication from the department did not reject refund outright; it expressly proposed adjustment of the excess amount towards future tax dues and directed refund of Re. 1 through the treasury. Since the assessee was not aggrieved by the adjustment and no refund claim was necessary for the amount already ordered to be adjusted or refunded, the statutory requirement governing refund claims did not govern the factual situation. The Court therefore treated the limitation provision as inapplicable on these facts and confined itself to enforcing the department's own adjustment or refund direction, together with interest.

Conclusion: Section 33A did not bar relief. The petitioner was entitled to adjustment or refund of the excess amount with interest, in its favour.

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