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PETITIONER: SALES TAX OFFICER, BANARAS & OTHERS
Vs.
RESPONDENT: KANHAIYA LAL MUKUNDLAL SARAF
DATE OF JUDGMENT: 23/09/1958
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. DAS, SUDHI RANJAN (CJ) SINHA, BHUVNESHWAR P. SUBBARAO, K. WANCHOO, K.N.
CITATION: 1959 AIR 135 1959 SCR Supl. (1)1350 CITATOR INFO : R 1959 SC 149 (30) R 1964 SC1006 (14) R 1965 SC1942 (34) RF 1970 SC 898 (18,25,32,46,63) RF 1976 SC2243 (29) R 1984 SC 971 (9) E&R 1985 SC 901 (12) E 1986 SC1556 (1,27) R 1990 SC 313 (18)
ACT: Mistake of Law-Payment-Sales tax on forward transactions, subsequently held invalid--Claim for refund-Voluntary payment-Equitable considerations-Indian Contract Act, 1872 (9 of 1872),s. 72.
HEADNOTE: Under S. 72 of the Indian Contract Act, 1872: " A person to whom money has been paid ... by mistake or under coercion must repay or return it ". The respondent, a registered firm, paid sales tax in respect of its forward transactions in pursuance of the assessment orders passed by the sales tax officer for the years 1949- 51, but in 1952, the Allahabad High Court having held in Messrs. Budh Prakash jai Prakash v. Sales Tax Officer, Kanpuy, 1952 A. L. J. 332, that the levy of sales tax on forward transactions was ultra vires, the respondent applied for a refund of the ...