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TMI Blog2003 (11) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Shanmuga Traders, etc. v. State of Tamil Nadu and Others [ 1998 (4) TMI 484 - SUPREME COURT] , held that when the tax is a single point tax, the point of levy is the first sale. If the tax is not collected at that point by reason of an exemption granted by the Government, such tax could not be levied on the sale subsequently effected. After that judgment of the Supreme Court, the assessee applied for rectification of the assessment that had been made. The application of rectification was filed within the time allowed by law. While dealing with such a claim, although on facts it held that rectification was not permissible in that case, as the assessee had merely sought to argue by analogy that a decision rendered by a superior Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r proceeded to levy tax rejecting the plea that it was a second sale. The assessment for the year 1992-93 was made on 10-1-1994. 3.The Sales Tax Act was amended with effect from 17-7-1996. The amended Section 3 of the Act provides for levy of sales tax on the second sale, if the first sale has not suffered tax for any reason in cases where the point of levy is the first sale. The amendment did not cover the assessment year 1992-93. 4.The Supreme Court in the case of Shanmuga Traders, etc. v. State of Tamil Nadu and Others [114 STC 1] decided on 22-4-1998, held that when the tax is a single point tax, the point of levy is the first sale. If the tax is not collected at that point by reason of an exemption granted by the Government, such tax c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efund was not a party to that subsequent judgment. The learned Judge who spoke for the majority in that case observed that there was no provision in the Central Excise Act for reopening the concluded proceedings on the basis of a judgment subsequently rendered in the case of another assessee. The Court held that Art. 265 would not enable an assessee to claim refund on the ground of the payment having been made under a mistake. The discussion in that paragrph concluded thus :- "We are, therefore, of the clear and considered opinion that the theory of mistake of law and the consequent period of limitation of three years from the date of discovery of such mistake of law cannot be invoked by an assessee taking advantage of the decision in anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Another [64 ITR 67], a three Judge Bench of the Supreme Court held that an assessee under the Income-tax Act, who had paid tax for the assessment year 1952-53, pursuant to an assessment order made on 27-7-1955, a additional tax on the excess dividend declared by it, could maintain a petition for rectification on the strength of the decision rendered by the Court subsequently, holding that the levy of such additional tax on excess dividend was illegal. It affirmed the judgment of the High Court, which had treated that application of the assessee as one for rectification, although the assessee had couched it as a request for refund. The Supreme Court observed thus :- " The application to Income-tax Officer was one in which the request fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is, however, well-settled that if the Supreme Court has construed the meaning of a section, then any decision to the contrary given by any other authority must be held to be erroneous and such error must be treated as an error apparent on the record." 13.It is, therefore, clear that notwithstandings what may have been done by any other authority below the Supreme Court, when the Supreme Court pronounces on the true position of law any decision rendered by any other authority contrary to that is required to be regarded as an error which is apparent on the record. Rectification of such an error within the period permissible under law and in accordance with the provisions of the statute is clearly required to be effected. 14.This Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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