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1983 (3) TMI 238 - HC - VAT and Sales Tax
Issues:
Challenge to rejection of application for refund of sales tax under section 14 of the Orissa Sales Tax Act, 1947. Analysis: The petitioner, a government undertaking engaged in transport business, faced sales tax levies on unserviceable old parts, scrap materials, condemned vehicles, and obsolete stocks for multiple assessment years. Appeals against these levies were initially dismissed but later allowed by the Sales Tax Tribunal, leading to remand for fresh assessment. Despite this, the Sales Tax Officer rejected the petitioner's refund applications, citing pending appeals related to different years as the reason for rejection. The petitioner argued that once assessments are set aside, demands are extinguished until fresh assessments are conducted. The Additional Government Advocate acknowledged that the appeals mentioned in the rejection order were unrelated to the current assessment and that no appeal had been made against the Tribunal's decision to allow the appeals and order fresh assessments. The advocate contended that refunds are only due when assessments are annulled, not merely set aside for reassessment. Referring to a previous bench decision, the court emphasized that refunds are warranted when demands are wiped out due to appellate decisions. The court highlighted that the liability for reassessment is contingent, and until fresh assessments determine new demands, the petitioner is entitled to claim refunds for amounts paid. Based on these principles, the court found the opposite party's contention untenable and ruled in favor of the petitioner, allowing the writ application without costs. The court quashed the rejection order and issued a writ of mandamus directing the Sales Tax Officer to refund the tax paid against the assessments set aside in accordance with the law. Judge Behera concurred with the decision, and the judgment was issued in favor of the petitioner, granting the refund of the tax paid against the assessments that were remanded for fresh assessment.
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