- (1.) This case is covered by the principle of the judgment of this court in R. Abdul Quader and Co. v. Sales Tax Officer, Hyderabad. Abdul Quader's case raised a question as to the interpretation of section 11 (2) of the Hyderabad General Sales Tax Act, 1950. In the resent case, we are called upon to construe the meaning of section 8-B (2) of the Madras General Sales Tax Act, 1939. The language of the two statutes is substantially the same.
(2.) This court has held that the State Legislature has no power to legislate for recovering tax improperly collected from a person who under the State legislation relating to sales tax is not liable to pay tax. The order passed by the High court must, therefore, be set aside and the order passed by the Sales Tax tribunal must be restored. the appellant will be entitled to his costs in this court.;