Refund claim under sales tax law must be examined by the assessing authority before any entitlement is determined.

A refund claim arising from tax deducted at source on a works contract was required to be examined under section 7F(6) of the Tamil Nadu General Sales Tax Act, 1959 read with rule 18F of the Tamil Nadu General Sales Tax Rules, 1959. The statutory scheme obliges the assessing authority to refund the deposited amount, after adjusting arrears, if the dealer satisfies the authority that tax is not payable under sections 3B or 7C. Because the application had not been acted upon, the matter was remitted for consideration and disposal in accordance with law within a fixed time, without any finding on entitlement to refund.

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Issues: Whether a direction could be issued to the assessing authority to consider and dispose of the petitioner's refund application under section 7F(6) of the Tamil Nadu General Sales Tax Act, 1959 read with rule 18F of the Tamil Nadu General Sales Tax Rules, 1959.

Analysis: The request was confined to consideration of the refund claim said to arise from tax deducted at source on a works contract transaction. The statutory scheme under section 7F(6) requires the assessing authority to refund the amount deposited, after adjusting arrears, if the dealer satisfies the authority that tax is not payable under sections 3B or 7C. As the application had not been acted upon, the proper course was to direct the authority to examine the claim and dispose of it according to the statutory provisions within a fixed time. The order expressly recorded that no finding was being returned on the petitioner's entitlement to refund.

Conclusion: The writ petition was disposed of with a direction to the respondent to consider the refund application and decide it in accordance with law.

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