Refund of tax collected under an unconstitutional levy is maintainable in writ jurisdiction when the levy itself lacks lawful basis.

Tax collected under a statutory levy that had been read down as unconstitutional was held refundable in writ jurisdiction. The Court treated the refund claim as maintainable outside the ordinary statutory refund route because the levy itself lacked lawful basis in its operative reach. It also held that the bar against claiming only on another party's success did not apply where the petitioner directly challenged the impugned levy. The assessments for the relevant years were directed to be revised and the tax paid under the invalidated provision refunded.

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Issues: Whether the petitioner was entitled in writ jurisdiction to have the assessment orders for assessment years 1995-96 to 1997-98 revised and to obtain refund of tax paid on lease rentals under clause (b) of section 5E of the Andhra Pradesh General Sales Tax Act, 1957 after that provision was read down as unconstitutional.

Analysis: The levy was founded on clause (b) of section 5E, which had already been read down by the Supreme Court as being beyond the legislative competence of the State to the extent it covered certain deemed sales. Once the provision under which the tax was collected had been declared unconstitutional in its relevant operation, the claim for refund was treated as one outside the normal statutory refund framework. The Court also relied on the principle that a refund based on unconstitutionality is maintainable in writ jurisdiction, and that the bar applicable where a party merely seeks to rely on another person's success did not apply here because the challenge was to the levy itself.

Conclusion: The petitioner was entitled to revision of the assessments and refund of the tax paid for the assessment years 1995-96, 1996-97 and 1997-98.

Final Conclusion: The writ petition succeeded, and the respondents were directed to refund the tax collected under the invalidated levy.

Ratio Decidendi: Tax collected under a statutory provision that has been read down or held unconstitutional in its operative reach is refundable in writ jurisdiction, and such a claim is maintainable without insisting on a separate civil suit when the levy itself lacks lawful basis.

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