Case Law Details
Corporation Bank Vs Saraswati Abharansala And Another (Supreme Court of India)
Explore the Supreme Court judgment on Corporation Bank vs. Saraswati Abharansala regarding excess Sales Tax collection. Learn how the retrospective effect of a notification led to a rate reduction, compelling the state to refund the excess amount. Discover the legal implications, the court’s interpretation, and the directive for the state to refund the tax with interest. Stay informed about key legal precedents and the principles of statutory construction.
The first respondent is a dealer in bullion gold. It entered into transactions of purchase of gold from the appellant herein during the period 6th April 1999 and 10th December 1999. The total transactions during the said period were for a sum of Rs.423748518/-. Indisputably the rate of tax which was prevailing at the relevant time was 1%. The amount of sales tax at the said rate was collected from respondent No.1. The amount so collected, indisputably had been deposited with the sales tax authorities.
On or about 27th December 1999 vide S.R.O. No.1075/99 the rate of sales tax was reduced from 1% to 0.5% which was given a retrospective effect from 1st of April, 1999. The said Notification reads thus:-
“9 Any dealer Sale of bullion and specie to the registered dealer within the State.
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