1987 (11) TMI 355 - HC - VAT and Sales Tax

Summary

Issues:
1. Entitlement to exemption from sales tax and entry tax based on eligibility certificate.
2. Rejection of refund claim by Sales Tax Officer.
3. Failure of appeal against Sales Tax Officer's decision.
4. Delay in passing orders on refund applications by Forest Department.
5. Need for a writ of mandamus to direct the State Government to decide on refund applications.

Analysis:
The petitioner, an Oil Mills and Industries Ltd., purchased sal seeds from the Forest Department and paid sales tax as per section 64-A of the Sale of Goods Act. Claiming exemption from sales tax and entry tax based on an eligibility certificate issued under the M.P. General Sales Tax Act, the petitioner applied for eligibility certificates and produced them during assessment proceedings. However, the Sales Tax Officer rejected the refund claim on the grounds of non-deposit of sales tax with the tax authorities. The subsequent appeal against this decision also failed, leading to the petitioner making multiple refund applications to the Forest Department, which remained unresolved. The court noted that the eligibility certificate contained conditions, the applicability of which required factual determination, best left to the fact-finding authority. Despite this, due to the delay in processing the refund applications by the Forest Department, the court deemed it necessary to issue a writ of mandamus directing the State Government to decide on the refund applications within three months.

The judgment, allowing the writ petition, directed the State of M.P. and relevant departmental Secretaries to decide on the petitioner's refund applications within a specified timeframe. No costs were awarded, and the petitioner was to receive a refund of the outstanding security amount. The court emphasized the need for timely resolution of refund claims and highlighted the importance of adherence to procedural timelines in such matters.