C.S. Menon vs The Sales Tax Officer And Anr. on 21 February, 1967
1. The petitioner is an engineering contractor. In respect of works contracts, which he executed during the years 1950-51 to 1959-60 both inclusive, he was assessed to sales tax under the General Sales Tax Act, 1125 (Act 11 of 1125) (hereinafter referred to as the Act). Exhibits P-2 series are true copies of the orders of assessment made by the 1st respondent, the Sales Tax Officer, Second Circle, Ernakulam, in respect of the above-said years. The taxes assessed under these orders were duly paid by the petitioner ; and the total amount which he has paid by way of sales tax and surcharge is shown in exhibit P-l, a statement which he has appended to this original petition. The correctness of these facts is not questioned in the counter-affidavit filed on behalf of the State. The Supreme Court in South India Corporation (P.) Ltd. v. Secretary, Board of Revenue, Trivandrum [1964] 15 S.T.C. 74, held that the provisions contained in the Act, in so far as they authorised levy of sales tax on works contract, were beyond the legislative competence of the State and unconstitutional. This decision was rendered on 13th August, 1963. On the basis of this decision, the petitioner moved the Government for the refund of the amounts which he paid by way of tax for the aforesaid years, on the ground that he knew only by the above decision of the Supreme Court that the State was not entitled to levy tax on works contract, and that he was, therefore, entitled to get the amounts refunded. The petitioner did not get any reply to this application ; and, therefore, he has come before this Court for a writ of mandamus to be issued against the respondents for refund of the amounts shown in exhibit P-1.