1994 JTR(SC) 565
1994 AIR(SC) 2410 ; 1994 AIR(SCW) 2447 ; 1994 7 JT 20 ; 1994 2 PLJR(SC) 96 ; 1994 2 Scale 1043 ; 1994 5 SCC 559 ; 1994 Supp1 SCR 134 ; 1994 95 STC 188 ; 1994 KHC 1391
SUPREME COURT OF INDIA
M.N. VENKATACHALIAH, C.J.I., A.M. AHMADI, J.S. VERMA, G.N. RAY AND S.P. BHARUCHA, JJ.
M/s. Frick India Ltd. and another, Petitioners
Versus
State of Haryana and others, Respondents.
Writ Petn. (C) No. 1235 of 1986,
D/- 13-5-1994.
When provisions of a state's sales tax legislation are analogous to those of another state's act already decided by a Constitution Bench, the precedent applies, entitling the party to a refund of interest levied under those analogous provisions.
Act Referred :HARYANA GENERAL SALES TAX ACT: S.46, S.59, S.47, S.25
(A) General Sales Tax Act - Central Sales Tax Act - Refund of interest - Provisions of the State General Sales Tax Act being analogous to those of another State's Sales Tax Act - Decision of the Constitution Bench applicable - Interest levied and collected to be refunded with interest at 12% per annum from the date of actual recovery till refund.
Facts of the case:
Petitioners were levied and collected interest under the State General Sales Tax Act and the Central Sales Tax Act. A Constitution Bench had previously rendered a decision regarding analogous provisions of another State's Sales Tax Act.
Findings of Court:
The relevant provisions of the State General Sales Tax Act are analogous to those of the other State's Sales Tax Act; therefore, the petition must succeed.
Issues: Whether the interest collected under the State General Sales Tax Act and Central Sales Tax Act is refundable based on the precedent set by a Constitution Bench on analogous statutory provisions.
Ratio Decidendi: The court held that if the relevant provisions of a state's tax act are analogous to those of another state's act upon which a Constitution Bench has already ruled, the decision of the Constitution Bench is applicable.
Result: Petition allowed.
Facts of the case:
Petitioners were levied and collected interest under the State General Sales Tax Act and the Central Sales Tax Act. A Constitution Bench had previously rendered a decision regarding analogous provisions of another State's Sales Tax Act.
Findings of Court:
The relevant provisions of the State General Sales Tax Act are analogous to those of the other State's Sales Tax Act; therefore, the petition must succeed.
Issues: Whether the interest collected under the State General Sales Tax Act and Central Sales Tax Act is refundable based on the precedent set by a Constitution Bench on analogous statutory provisions.
Ratio Decidendi: The court held that if the relevant provisions of a state's tax act are analogous to those of another state's act upon which a Constitution Bench has already ruled, the decision of the Constitution Bench is applicable.
Result: Petition allowed.
Interest - The court applied the decision of this case because the provisions of the Haryana General Sales Tax Act are analogous to those of the Rajasthan Sales Tax Act.
A.P.Dhamija, ARUN C.MITRA, ARUNESHVAR GUPTA, ASHOKE SENGUPTA, Ayesha Khatri, BHASKAR PRADHAN, D.N.Mishra, HARISH N.SLAVE, Indu Malhotra, KRISHAN KUMAR GOGNA, Kusum Chaudhary, MINAKSHI GROVER, N.D.B.RAJU, NISHA BAGCHI, PUNAM MADAN, Ravindra Narayan, S.Atreya, S.K.JAIN
Judgment
AHMADI, J.:- In view of the decision rendered by the Constitution Bench in J. K. Synthetics Ltd. v. The Commercial Taxes Officer (Civil Appeals Nos. 3414-16/ 82 decided on May 9, 1994), since the relevant provisions of the Haryana. General Sales Tax Act are analogous to those of the Rajasthan Sales Tax Act, this petition must also succeed. We, therefore, allow this petition and direct that the amount of interest levied and collected from the petitioners under the HARYANA GENERAL SALES TAX ACT as well as the Central Sales Tax Act shall be refunded to the petitioners within three months from today with interest at 12% per annum from the date of actual recovery till refund. There will, however, be no order as to costs in the facts and circumstances of the case. CMP will also stand disposed of.
Order accordingly.
For Citation : AIR 1994 SC 2410