Restitution for tax collected by mistake depends on exemption and limitation findings before final disposal

Money paid under a mistake of law is within the scope of restitution, and the State is ordinarily bound to refund tax collected by mistake, subject to limitation and applicable sales tax provisions. Where the factual basis for exemption under Article 286(1)(a) and the limitation issue has not been finally determined, further findings are required before final disposal. The matter was therefore remitted for findings on whether the sales were outside the State and whether the writ petition was within limitation, with the appeal kept pending until those findings were received.

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Issues: Whether the appeal should be remitted for findings on whether the sales tax collected was refundable because the sales were outside the State and whether the writ petition was within limitation.

Analysis: Money paid under a mistake of law falls within the scope of mistake for the purpose of restitution, and there is ordinarily a duty on the State to refund tax collected by mistake, subject to the statutory law of limitation and any relevant sales tax provisions. Since the High Court had not finally determined whether the sales were outside the State and had not adjudicated the limitation question, the appropriate course was to obtain factual findings on those matters before final disposal.

Conclusion: The matter was remitted to the Sales Tax Officer for findings on exemption under Article 286(1)(a) and limitation, and the appeal was kept pending for final disposal after receipt of those findings.

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