1989 (2) TMI 375 - HC - VAT and Sales Tax

Summary

Issues:
1. Refund of excess tax paid by the petitioner for the assessment year 1971-72.
2. Interpretation of section 14-D of the Orissa Sales Tax Act.
3. Jurisdiction of the Sales Tax Officer to pass the order of refusal based on the proviso to section 14.

Analysis:
The petitioner, a company assessed under the Orissa Sales Tax Act and the Central Sales Tax Act, challenged an assessment order for the year 1971-72, leading to a refund application after the order was set aside by the Sales Tax Tribunal. The Sales Tax Officer rejected the refund application, stating that no refund is due at the reassessment stage. The petitioner contended that setting aside the assessment order means no legal demand exists, citing two authoritative decisions supporting the claim for a refund. The Court agreed with the petitioner, emphasizing the error in rejecting the refund application.

The Court addressed the Revenue's contentions regarding section 14-D of the Orissa Sales Tax Act, stating that the power to withhold a refund under this section lies with the Commissioner and cannot be exercised by subordinate officers. As the Commissioner did not exercise this power in the present case, the Court rejected the argument that the order of refusal was made under section 14-D. The Court also discussed the proviso to section 14, noting that it was not in effect when the Sales Tax Officer passed the impugned order, rendering it beyond jurisdiction.

Regarding the reassessment post the Tribunal's order, the Court acknowledged the lack of evidence on whether reassessment had occurred but presumed it had taken place due to the significant time elapsed. Consequently, the Court directed the petitioner to apply for a refund if entitled after the reassessment by the assessing officer. The Court disposed of the writ application with these observations, emphasizing the need for the petitioner to seek a refund post reassessment.

Justice Padhi concurred with the judgment, leading to the disposal of the writ application in line with the Court's directives.