Statutory bar on civil refund suits under estate duty law applies where the claim indirectly challenges tax recovery action.

Section 78 of the Estate Duty Act bars a civil suit that, in substance, seeks to set aside, modify, or indirectly challenge an estate duty determination or recovery action taken in good faith under the Act. Applying the same principle used for the analogous bar under section 293 of the Income-tax Act, the Court treated the refund claim as a challenge to action taken under the taxing statute and held the objection to maintainability to be a pure question of law that could be raised at the appellate stage. The suit was held not maintainable, the refund challenge failed, and liberty remained to seek remission before the Board under section 71.

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Issues: Whether a civil suit seeking refund of estate duty already paid under protest was maintainable in view of the statutory bar under the Estate Duty Act.

Analysis: Section 78 of the Estate Duty Act bars a suit in a civil court to set aside or modify an estate duty determination and also bars proceedings against the Government or its officers for acts done in good faith under the Act. The payment had been made pursuant to the liability asserted under the Act and in the course of attachment proceedings. Relying on the principle applied in the analogous bar under section 293 of the Income-tax Act, 1961, the Court held that the real effect of the suit was to question action taken under the taxing statute. The objection of maintainability was treated as a pure question of law and was permitted to be raised at the appellate stage.

Conclusion: The suit was not maintainable and the challenge to recovery of the estate duty amount failed.

Final Conclusion: The statutory bar under the Estate Duty Act prevailed, the refund suit was dismissed, and the Revenue's appeal succeeded, while liberty was given to seek remission before the Board under section 71.

Ratio Decidendi: Where a suit would, in substance, set aside, modify, or indirectly challenge an estate duty determination or recovery action taken in good faith under the Act, it is barred by section 78 of the Estate Duty Act.

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