1961 (3) TMI 78

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....tor imposed by statute to refund a tax illegally collected and it was maintainable; but it can only be allowed subject to the restrictions which have been imposed by the Legislature. It is not open to the claimant to rely upon the statutory right and to ignore the restrictions subject to which the right is made enforceable. We are therefore of the opinion that the High Court was right in restricting the order of refund in the petition under Article 226 of the Constitution. The order of refund passed by the High Court, however, requires to be slightly modified and we direct that it shall run as follows: "That part of the sales tax which has been paid by Messrs Burmah Construction Co. shall be refunded by the State of Orissa to the Burm....

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.... on 30th June, 1950. In respect of the assessment under section 12(5) relating to the quarter ending on 31st March, 1950, the assessing officer as also the Collector held that the assessee was liable to pay tax from the very start of his business at Chandbali. The Tribunal was of opinion that the taxing authority had misapplied section 4(5) of the Act, inasmuch as this provision was added to the main Act by the Amending Act of 1951 and came into force on 26th November, 1951, which has no retrospective effect. Thus, the Tribunal disagreed with the Sales Tax Officer and the Assistant Collector and held that there was no evidence that the assessee exceeded the prescribed limit in his gross turnover in respect of his new business at Chandbali. ....

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....ith new business. Apart from sub-section (5) of section 4, under sub-section (3) once the liability to pay sales tax arises, it continues for three years, until it is cancelled or has ceased by operation of the first proviso to sub-section (3) of section 4. Admittedly in this case the assessee is a registered dealer since the commencement of the Orissa Sales Tax Act, 1947. Since his liability to pay sales tax in Orissa was continuing when he opened a new place of business at Chandbali, he was liable to pay tax on his gross turnover at Chandbali from the start of his business even if it failed to exceed Rs. 10,000. Thus, the liability of the assessee having arisen under sub-section (1) of section 4 of the Act, it was continuing until after t....