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TMI Blog2014 (3) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the tax collected at the higher rate by the dealer and remitted to the State Government - The intention of the State in issuing the said notification has been reflected in the clarification issued by the CC Taxes, Thiruvananthpuram in Civil Appeal No. 1827 of 2004 - It states that the notification is based on the intention of the State that retrospective operation given to the notification must not result in outflow of money from the Government exchequer - Having paid the higher rate of tax to the State the assessee is not entitled for refund of the aforesaid amount - We say so for the reason that the rate of tax at the relevant point of time was 8% - The appellant had paid that amount - By amendment, though the rate of tax wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 ('the Act' for short). So far as local purchase of areca nut is concerned, it is liable to tax at the last point of purchase by the dealer liable to tax under Section 5(1) of the Act in the State. Whereas it is taxable at the point of first sale in the State by the dealer liable to tax under Section 5(1) of the Act if imported from outside the State. 4. The dispute relates to the assessment year 1999-2000, the period commencing from 01.01.2000 to 05.02.2000. The rate of tax for areca nut upto 31.12.1999 was 5%. In the assessment year 1999-2000, under the Kerala Taxation Laws (Amendment) Ordinance, 1999 the rate of tax was enhanced from 5% to 8% with effect from 01.01.2000. The appellants, pursuant to the aforesaid amendment, had paid ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectively inserted namely :- 10 Newsprint 8 2 11 Arecanut 8 4 12 Cardamom 8 4 13 Pepper 8 4 This notification shall be deemed to have come into force on the 1st day of January, 2000. Tax, if any, already collected at the higher rate shall be paid over to Government and tax, if any already paid shall not be refunded." (emphasis supplied) 5. For the sake of convenience, we would sequentially notice the relevant orders issued only in the case of appellant before us in the first appeal. The assessing authority had carried out the assessment and computed the tax liability for the assessment year 1999-2000 and passed the Assessment Order directing that the excess amount paid by the assessee would be adjusted towards the surcharge for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded that the appellant-assessee is not entitled to refund of tax already paid and therefore, dismissed the case of the appellant-assessee. 8. Aggrieved by the aforesaid, the assessee had approached the Division Bench of the High Court which also concurred with the finding and conclusion reached by the learned Single Judge and dismissed the Writ Appeal filed by the assessee. 9. It is this judgment and order which is called in question by the appellants-assessees in these Civil Appeals. 10. We have heard the learned counsels appearing for parties to the lis. We have also perused the documents on record including the aforesaid notification and the judgments and orders passed by the Courts below. 11. The learned counsel appearing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that if the tax is already paid by the dealer at the higher rate, it shall not be refunded back to the dealer. By implication, the first category would include the tax collected by the dealer from the buyers and retained without remittance to the State Government. Whereas, the second category would refer to the dealers who have remitted the tax at a higher rate to the State Government and are not entitled to the refund. 15. The plain reading of the notification would make it apparent that the State Government has expressly made it clear that if, for any reason, the assessee had collected and had paid the higher rate of tax to the State Government the same shall not be refunded. The prohibition of refund is only in respect of the tax colle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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