STATE OF MADHYA PRADESH Vs. HAJI HASAN DADA

JUDGEMENT

(1.) By order dated April 17, 1952 the respondent Haji Hasan Dada was assessed by the Assistant Commissioner of Sales Tax, Nagpur Region, to pay tax under the Central Provinces and Berar Sales Tax Act 21 of 1947 on the turnover from his business in yarn for the period November 13, 1947 to November 1, 1948. The respondent paid the amount of tax assessed on July 8,1952. Thereafter relying upon S.13 of the C. P. and Berar Sales Tax Act, 1947 he applied on November 20,1952 to the Assistant Commissioner of Sales Tax for an order refunding Rs. 837/10 on the plea that in the turnover of his business were included dyeing charges which were not taxable under the Act, and which since the order of assessment were held by the Board of Revenue to be not taxable. The Assistant Commissioner rejected the application,and the order was confirmed by the Commissioner of Sales Tax in appeal. The Board of Revenue, Madhya Pradesh, however, set aside the order and ordered that the case be returned to the commissioner "for disposal afresh in the light of the legal principles explained in Gauhar Sheikh Nazir vs. The State, 1952 - 3 STC 331 (MP-BR)"

(2.) During the pendency of the proceedings before the taxing authorities, S. 13 of the Act was amended with retrospective effect. It is claimed by the State that under the amended section the right to obtain refund in cases similar to those under examination was taken away retrospectively.

(3.) The state of Madhya Pradesh moved the Board of Revenue for a reference under S 23 of the Act to the High Court and the Board or Revenue referred the following three questions: