Law: Sales Tax Act, (III of 1951)

Section: 3,27(1),27(2),20

Sales-tax Act, 1951 -- Sections 3, 27(1), 27(2) -- Refund of sales-tax -- Unlicensed manufacturer -- Sales-tax paid on local purchases of partly manufactured goods consumed in manufacture of goods liable to sales-tax -- Whether refundable -- Held no -- Unlicensed manufacturer not entitled to refund of sales tax on cost of raw materials consumed in manufacture of goods liable to sales tax unless excess amount paid due to incorrect calculation or similar causes -- JUDGMENT The judgment of the court was delivered by NOORUL ARFIN J. The following question of law has been stated to this Court by the Income tax Appellate Tribunal under the Sales-tax Act, 1951: "Whether under Sales -tax Act, 1951 an unlicensed manufacturer is entitled to refund of sales-tax on the cost of raw materials consumed in the manufacture of goods liable of sales-tax?" The question arises in these circumstances : The assessee manufactured surgical bands but did not have a manufacturing licence. For the purpose of its manufactures, the assessee imported some material on which it paid sales-tax in the sum of Rs. 19,542.00. Thus, on its own manufacturers, the assessee paid a further sum of Rs. 66, 103.00 as sales-tax . It has been conceded by Mr. I. N. . Pashal that the assessee does not dispute its liability with regard to the sum of Rs. 3, 100 paid by the assessee on imported goods. The dispute is with regard to the sum of Rs. 19,542.00, which was paid as sales -tax on local purchases. Mr. I. N. Pasha contends that sales tax being a single stage tax, the assessee is entitled to the refund of Rs. 19, 542.00 His main emphasis is on sub section (2) of Section 27 which, at the relevant time, read as under: "(2) If any person satisfies the Sales-tax Officer that the amount of tax paid by him exceeds the amount with which he is properly chargeable under this act, he shall be entitled to a refund of such excess, and the provisions of this act in respect of appeal and revisions shall apply to an order passed by the Sales-tax Officer under this sub-section as there apply to an assessment." According to Mr. I. N. Pasha the words " exceed the amount with which he is properly chargeable under this Act. ''…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492