Refund of excess entry tax after sales tax set-off was held payable under Section 11.

Where entry tax paid under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 was adjusted against sales tax liability and an excess balance remained, Section 11 authorised refund of that excess amount. The competing view that refund was confined only to excess paid under the entry tax levy itself was rejected because binding Division Bench authority had already held that an unadjusted excess after set-off remains refundable. The rejection orders were therefore unsustainable, and refund was directed.

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Issues: Whether refund of excess entry tax was available under Section 11 after adjustment under Section 4 of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990.

Analysis: The claim arose because entry tax paid at the relevant rate, after adjustment against sales tax liability, left an excess balance. Section 11 provides for refund of tax paid in excess of the amount due. The competing view was that Section 11 applied only where excess tax was paid under the entry tax levy itself and not to the unadjusted balance remaining after set-off. However, the issue had already been answered by binding Division Bench authority, which held that once excess amount remained after adjustment, the assessee was entitled to refund under Section 11.

Conclusion: Refund was held admissible, and the rejection orders could not be sustained.

Final Conclusion: The writ petitions succeeded, and the respondent was directed to refund the excess amount within the stipulated time.

Ratio Decidendi: Where entry tax paid and adjusted against sales tax liability leaves an excess balance, Section 11 of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 authorises refund of that excess amount.

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