1968 (2) TMI 105 - HC - VAT and Sales Tax

Summary

Issues:
- Application under Article 226 seeking a writ of mandamus for refund of illegally recovered amount
- Interpretation of Section 5(c) of the Andhra Pradesh General Sales Tax Act
- Comparison with Section 11(2) of the Hyderabad General Sales Tax Act
- Validity of the order directing payment to the Government
- Applicability of writs in the given circumstances

Analysis:
The judgment pertains to an application under Article 226 of the Constitution seeking a writ of mandamus for the refund of an amount illegally recovered from the petitioner. The petitioners, who are dealers in various goods, including paddy, were assessed by the Additional Commercial Tax Officer. During the assessment year when the export of paddy was banned, the petitioners had to sell the paddy they purchased at an early stage. The issue arose when the respondents directed the petitioners to pay the tax amount collected from their purchasers, citing Section 5(c) of the Andhra Pradesh General Sales Tax Act.

The court delved into the legality of Section 5(c) by comparing it with Section 11(2) of the Hyderabad General Sales Tax Act. Referring to a previous Supreme Court decision, the court highlighted that a similar provision in the Hyderabad Act was deemed ultra vires of the Constitution. Drawing a parallel, the court concluded that Section 5(c) must also be considered ultra vires and, therefore, cannot be enforced. The court emphasized that while purchasers could potentially recover the amount through a suit, the petitioner could not be compelled to pay it to the Government under Section 5(c).

Regarding the appropriate writ to be issued, the court determined that mandamus was not suitable due to the absence of a statutory duty. Instead, the court opted to quash the portion of the assessment order related to the illegal recovery by issuing a writ of certiorari under Article 226 of the Constitution. The judgment allowed the writ petition, quashing the impugned portion of the assessment order and refrained from issuing any costs.

In conclusion, the judgment provides a detailed analysis of the legality of the order directing payment under Section 5(c) of the Andhra Pradesh General Sales Tax Act, ultimately ruling it as ultra vires and quashing the relevant portion of the assessment order through a writ of certiorari.