- (1.) The two appeals, Civil Appeals Nos. 711 and 1284 of 1966, are by special leave from the judgments of the Allahabad High court. These appeals as also the writ petition shall stand disposed of by this judgment.
(2.) In Civil Appeal No. 711 of 1966 the assessee-company manufactures and deals in sugar and its allied products. In the relevant assessment year 1950-51 the assessee had opted to submit its return on the basis of the turnover of the previous year 1949-50 for the period 1/04/1949, to 31/03/1950. The Sales Tax Officer assessed a sum of Rs. 96,974-5-8 as sales tax on the turnover for the aforesaid period. During the previous year the assessee had realised Rs. 1,20,000. 00 as sales tax from its customers and had deposited Rs. 63,487-2-10 towards its tax liability. The assessee was asked to deposit the balance of Rs. 33,487-2-10 to meet the total tax liability of Rs. 96,974-5-8. The Sales Tax Officer also directed the assessee to deposit a sum of Rs. 23,025-10-4 in the government Treasury under section 8-A (4) of the U. P. Sales Tax Act, 1948, hereinafter called the Act. The assessee filed an appeal against the regular assessment.
(3.) The Judge (Appeals) redetermined the tax turnover and reduced the tax liability to Rs. 14,621-9-4. The assessee applied for refund of Rs. 48,965-9-6 being the difference between Rs. 63,487-2-10 deposited and Rs. 14,621-9-4 being the amount of tax as determined by the Judge (Appeals). The Sales Tax Officer declined to give any refund on the ground that the assessee had in fact realised Rs. 1,20,000. 00 from its buyers on account of sales tax and it was liable to deposit the entire balance after excluding Rs. 14,621-9-4 and was therefore not entitled to any refund.;