1963 (4) TMI 28

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....d in the course of inter-State trade. Under rule 20 of the Madras General Sales Tax (Turnover and Assessment) Rules refund of tax was claimed. The assessing authority held that such a refund provided for therein was available only on the submission of certain returns within a prescribed period. Such returns not having been filed, the refund of tax claimed was refused. Against this order, an appeal was taken to the Appellate Assistant Commissioner. The appellate authority accepted the conclusion reached by the assessing authority that since the conditions prescribed under the relevant rule had not been complied with, the refund could not be granted and that on the facts established, the assessment proceedings could not be impeached. A furthe....

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.... among the restrictions imposed on the sales tax law of a State, in so far as the taxation of the sale or purchase of declared goods is concerned, section 15(b) was enacted in these terms: "Where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be provided in any law in force in that State." The need for this provision is fairly clear. A sale of the declared goods in the course of inter-State trade or commerce attracts tax liability under the Central Sales Tax Act, and this provision therefore enacts that i....

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....rce. He urges that the tax cannot be said to be levied till the actual assessment to tax is made at the end of the year. It is only at that time that it can be said that tax has been levied inside the State on the purchase of cotton. If that is so, it is only then that a claim to refund can properly be made. He also urges that to refuse the refund for such reasons as advanced by the department would amount to the unlawful levy of a tax in respect of a transaction which Parliament has declared shall not be taxable.   We are not disposed to agree that the State levy of tax becomes either illegal or at least improper solely for the reason that the goods have been sold in the course of inter-State trade. The State law provides for the t....