1966 (9) TMI 116 - SCH - VAT and Sales Tax

The State Legislature has no power to legislate for recovering tax improperly collected from a person who under the State legislation relating to sales tax is not liable to pay tax - Appeal allowed. The order passed by the High Court must, therefore, be set aside and the order passed by the Sales Tax Tribunal must be restored

Summary

The Supreme Court allowed the appeal, stating that the State Legislature cannot recover tax from a person not liable to pay. The judgment was based on the interpretation of section 8-B(2) of the Madras General Sales Tax Act, similar to a previous case. The High Court's order was set aside, and the Sales Tax Tribunal's order was restored. The appellant was awarded costs.