Retrospective exemption with no-refund clause bars refund of purchase tax paid at the purchase point.

A retrospective exemption notification that expressly states tax already paid shall not be refunded bars a refund claim, even where the dealer did not separately collect the levy from customers. The Kerala HC treated purchase tax under the relevant provision as payable at the purchase point and distinguished authorities dealing with sales tax. It held that the refund prohibition in the notification governed the claim, reflecting a concession intended to protect revenue and prevent outflow from the exchequer. The challenges based on Articles 265 and 14 were rejected in light of the statutory setting and precedent, and the assessee was not entitled to refund.

---

---

Issues: Whether the assessee was entitled to refund of purchase tax already paid after retrospective exemption notifications stated that tax, if any, already paid shall not be refunded.

Analysis: The exemption was granted under section 10 of the Kerala General Sales Tax Act, 1963 with retrospective effect, but the notifications expressly barred refund of tax already paid. The Court distinguished cases dealing with sales tax and held that purchase tax under section 22(2)(b) is payable at the purchase point and the dealer cannot collect it as purchase tax from customers. The clause against refund was held to apply even where the tax had been paid, and the Court followed the reasoning that the retrospective concession was intended to protect the revenue and prevent outflow from the exchequer. The plea based on article 265 and article 14 was rejected in view of the applicable precedent and the statutory setting.

Conclusion: The assessee was not entitled to refund, and the challenge to the assessment order failed.

Ratio Decidendi: Where a retrospective exemption notification expressly provides that tax already paid shall not be refunded, the refund claim cannot be allowed merely because the dealer did not separately collect the tax from customers, especially where the levy is purchase tax payable at the purchase point.

---