1983 (2) TMI 278 - HC - VAT and Sales Tax

Summary

Issues:
1. Quashing of order passed by Commissioner of Sales Tax
2. Refund of tax levied and collected under mistake of law

Analysis:
1. The petitioner sought to quash the order passed by the Commissioner of Sales Tax, M.P., Indore, refusing to exercise jurisdiction under section 39(1) of the M.P. General Sales Tax Act. The petitioner, engaged in the sale and purchase of iron and steel goods, was assessed to sales tax for several years based on filed returns. Following a court decision declaring galvanized iron sheets as declared goods taxed at a concessional rate, the petitioner applied for revision and refund of tax collected on these items. However, the Commissioner rejected the application citing lack of suitable reasons for exercising revisional powers. The High Court held that while the petitioner could request revision, the Commissioner's decision not to exercise powers was based on the absence of suitable reasons, not a denial of the right to apply. Hence, the Court dismissed the petition, stating it was not a fit case for invoking extraordinary powers under Article 226 of the Constitution.

2. The petitioner also sought a direction for refund of tax collected under mistake of law. The Court noted that the petitioner had the option to file a suit for such a remedy. Considering that the assessments were completed long ago based on voluntarily filed returns, the Court deemed it inappropriate to order a refund in a petition under Article 226 of the Constitution. Therefore, the Court summarily dismissed the petition without notice, indicating that a suit was the appropriate remedy for seeking a refund of the tax paid.