CORPORATION BANK versus M/S SARASWATI ABHARANSALA AND ANOTHER

CORPORATION BANK versus M/S SARASWATI ABHARANSALA AND ANOTHER

The State of Kerala is bound to refund the excess sales tax collected due to retrospective reduction in the rate by SRO No. 1075/99; the prohibition on refund in earlier notifications stands repealed by necessary implication. The refund is owed unless the principle of unjust enrichment applies, which does not in...

Source-derived case information.

Parties
Appellant: Corporation Bank; Respondent No. 1: M/s. Saraswati Abharansala; Respondent No. 2: State of Kerala
Jurisdiction
India
Judgment Date
19 November 2008
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Division Bench of High Court
Outcome
Appeal allowed
Legal Topics
Sales Tax, Retrospective Operation, Refund of Tax, Interpretation of Statutes
Tax Law Constitutional Law Administrative Law Sales Tax Retrospective Operation Refund of Tax Interpretation of Statutes

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Parties

Corporation Bank

Appellant

M/s. Saraswati Abharansala

Respondent No. 1

State of Kerala

Respondent No. 2

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Division Bench of High Court

Legal Issues

  1. 1 Is the State of Kerala obliged to refund excess sales tax collected due to reduction in rate by retrospective notification?
  2. 2 Does a subordinate notification prohibiting refund override statutory or constitutional mandates for refund?

Ratio Decidendi

The State of Kerala is bound to refund the excess sales tax collected due to retrospective reduction in the rate by SRO No. 1075/99; the prohibition on refund in earlier notifications stands repealed by necessary implication. The refund is owed unless the principle of unjust enrichment applies, which does not in this case.

Court Disposition

Appeal allowed

Orders

  • State of Kerala directed to refund the excess sales tax collected to respondent no. 1 with interest at the rate of 10% per annum within four months from the date of communication of this order.
  • If the amount is not paid within four months, the outstanding sum shall attract interest at 15% per annum.