Dhulabhai And Others vs The State of Madhya Pradesh
(Appeal of wrongful sales tax taken,under sec80 of CPC)
- Bench: Hidayatullah, M. (Cj), Bachawat, R.S., Vaidyialingam, C.A., Hegde, K.S., Grover, A.N.
Issue:
Whether civil courts have jurisdiction in cases of tax refund?
Facts:
· The appellants are tobacco dealers.
· It was a writ petition on sales tax illegally collected against Constitution in Art 301 & 304A
· Suits not maintainable under sec17 of the act.
· There was an exclusion of jurisdiction of civil court.
· In Firm IlluriSubbayya Chetty & Sons' case,the petitioner acknowledged that the tax was payable & he did not raise this issue under the Act.
· In M/s. Kamala Mills Ltd. v. State of Bombay, it was held that civil courts are excluded in suits of tax refund,under sec 20 of Bombay Sales Tax act.
· Writ of certiorari can be issued for the refund under the time limit in Limitation act.
· It was illegal to levy a tax on the importer when an equal tax was not levied on similar goods produced in the State.
Appellant’s contentions:
· They state that the taxes were not levied in Madhya Pradesh,hence were illegally taken from them.
· If sec 17 of Limitation act was valid,then its provisions could be applied,but it’s not.
Respondent’s contentions:
· The State pleaded that as appeals against the assessment were pending before the Sales Tax Appeal Judge the plaintiffs were not entitled to file suits.
Final judgement:
· Appeals were granted in the favour of the appellants.
· The tax was ex facie violative of art 301, and civil courts do not have the jurisdiction.
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