Law: Sales Tax Act, (III of 1951)

Section: 17,17(1),27

[Sales Tax Act, 1951 (III of 1951)]........Sections 17(1), 27-Reference to High Court-Question of refund ability of sales-tax not finally decided by the Tribunal but arising out of its order-Question whether referable in the High Court-Held yes. Against the Reference Application filed by the petitioner a preliminary objection was raised on behalf of the respondent to the effect that as the Sales Tax Officer passed his order permitting refund after considering the relevant provisions of law and applying his mind to the facts of the case, there was no mistake apparent on the face of the record and the case not at all covered by Section 30 of the Sales Tax Act. It was further submitted that the Tribunal, in its first order, had described the controversy between the parties, as regards refundability of the amount, to be academic in nature and refrained from giving any finding on it. In this view, therefore, it was claimed that the question could not arise out of the second order, rendering the reference as misconceived. The High rejecting the preliminary objection: Held, that, firstly, the question of refundability had not been finally decided and secondly, it does arise out of the order of the Tribunal. Case referred to:- Helal Jute Press Ltd. v. Commissioner of Income-tax, Dacca (PLD 1971 Dacca 175-(1970) 22 Taxation 157. B. Sales Tux Act, 1951 (III of1951)-Section 27-Refund-Sales-tax-Timber merchant-Sales-tax realised from customers unauthorisedly-Whether he became purported agent of the Government-Held yes-Whether became functus officio as soon as he paid the amount to the exchequer-Held yes-Whether entitled to refund of the amount so deposited-Held no. The main question involved is about the entitlement of the respondent to ask for refund and receive the amount which he had collected from his customers, separately from price of the timber, as sales tax. The respondent did have the lawful authority to collect this amount if it was due. But if a person having no authority to act purports to bind another as his agent, he is a purported agent and is subject to the same liability as an agent would be, who acted without authority. The principal can elect to ratify…

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