Statutory adjustment of excess tax payment cannot be defeated by unrelated proceedings over another charging provision.

Where a statute expressly permits adjustment or refund of excess tax paid, that statutory benefit cannot be denied merely because other proceedings questioned a different charging provision. The assessee's claim for adjustment under section 4(1) of the Karnataka Special Tax on Entry of Certain Goods Act, 2004 was supported by admitted excess payment and was independent of the validity of section 3. The appellate authority correctly found no prohibition on adjustment, so revisional interference was unwarranted. The direction allowing set-off or refund of the excess tax was restored.

---

---

Issues: Whether the revisional authority was justified in interfering with the appellate authority's order directing adjustment of tax paid under section 4(1) of the Karnataka Special Tax on Entry of Certain Goods Act, 2004 against liability under the Karnataka Sales Tax Act, 1957.

Analysis: The assessee's claim was founded on section 4(1) of the Karnataka Special Tax on Entry of Certain Goods Act, 2004, which contemplates adjustment or refund where tax paid exceeds the tax payable under the Karnataka Sales Tax Act, 1957. The request for adjustment was based on admitted facts showing excess payment, and the appellate authority had correctly held that there was no prohibition against such adjustment. The revisional authority relied on proceedings concerning the striking down of section 3 of the Act and the interim order in appeal, but those proceedings had no bearing on a claim grounded independently in section 4(1).

Conclusion: The revisional authority was not justified in interfering with the appellate authority's order, and the assessee was entitled to adjustment of the excess tax paid.

Final Conclusion: The appellate authority's direction for adjustment stood restored and the revisional order was set aside, leaving the assessee entitled to the statutory benefit of set-off or refund of the excess amount.

Ratio Decidendi: Where the statute expressly provides for adjustment or refund of excess tax paid, revisional interference is unwarranted if the claim is independently founded on that provision and is not dependent on unrelated proceedings concerning the validity of another charging section.

---