Refund of excess sales tax on accepted returns remains available, subject to verification against unjust enrichment.
Where a dealer's return stands accepted because assessment is not completed within the prescribed time, tax paid in excess of the liability shown in the return is refundable under the West Bengal Sales Tax Act, 1994 even without a subsisting assessment order. The refund provision is not confined to payments made pursuant to assessment. However, release of the refund may still be conditioned on proof that the claimant will not be unjustly enriched, so the authority may verify that equitable bar before payment where applicable.
Issues: (i) Whether tax paid in excess of the amount payable on the basis of the returns is refundable even when no valid assessment order survives or when assessment is not made within the prescribed time. (ii) Whether the refund of the excess amount is barred unless the claimant overcomes the objection of unjust enrichment.
Issue (i): Whether tax paid in excess of the amount payable on the basis of the returns is refundable even when no valid assessment order survives or when assessment is not made within the prescribed time.
Analysis: The statutory scheme places primary emphasis on payment of tax according to the dealer's return, with assessment becoming necessary only where the return is found to be incorrect, incomplete, or otherwise liable to be questioned. Where assessment is not completed within the prescribed time, or where an assessment is set aside on limitation, the legal consequence is that the return is treated as accepted and the tax liability stands quantified on the basis of the return itself. In that situation, Section 60 of the West Bengal Sales Tax Act, 1994 permits refund of any amount paid in excess of the tax due under the Act, and the refund is not confined to payments made strictly pursuant to an assessment order.
Conclusion: The excess tax paid by the dealer is refundable notwithstanding the absence of a subsisting assessment order.
Issue (ii): Whether the refund of the excess amount is barred unless the claimant overcomes the objection of unjust enrichment.
Analysis: Although excess tax cannot be retained by the State merely because it was paid, refund relief in writ or tribunal jurisdiction remains subject to equitable considerations. The claimant may be required to satisfy the authority that retention of the amount would not amount to unjust enrichment. The refund of tax deducted at source was treated as not involving unjust enrichment, while the amount paid on 27 September 2004 was directed to be refunded only after the claimant satisfied the authority on the absence of unjust enrichment.
Conclusion: The refund claim is maintainable, but the actual release of the disputed payment is subject to verification that there is no unjust enrichment.
Final Conclusion: The dealer succeeds in obtaining refund of excess tax, and the authorities are directed to process the refund in accordance with the finding that the excess payment is not retainable, subject only to the limited safeguard against unjust enrichment where applicable.
Ratio Decidendi: Where a taxing statute requires payment on the basis of returns and assessment is not validly made within the prescribed period, the returns stand accepted by operation of law and any tax paid in excess of the amount legally due under the returns is refundable under the statutory refund provision, subject to equitable control against unjust enrichment.
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