Ltd. & Anr Vs. Sales Tax Officer & Ors  Insc 498 (27 November 2002)
Hegde & B.P.Singh. Santosh Hegde,J.
short question arises for our consideration whether the provisions of the Orissa
Sales Tax Act (the Act) would in any manner disentitle the appellants from
claiming interest which has become payable by virtue of an interim order made
by the High Court in exercise of its writ jurisdiction under Articles 226 and
227 of the Constitution.
appellants herein had challenged an interim order made by the Additional
Commissioner of Sales Tax in a writ petition before the High Court of
Judicature, Orissa, Cuttack in OJC No.1200 of 1995. The High
Court in the said writ petition made an order on 15.3.1995 in the following terms
the event the petitioner succeeds in the Second Appeal, then the Sales Tax
authorities would refund the amount with interest at the rate of 18 per cent
per annum. The writ application is disposed of." Subsequently the
appellant succeeded in the proceedings and the amount directed to be deposited
by the High Court as per the abovenoted order became liable to be refunded to
the appellant. For reasons better known, instead of asking the respondent State
to repay the amount deposited by them, the appellant seems to have filed an
application under the provisions of the Orissa Sales Tax Act (the 'Act') for
refund of the amount in deposit. Taking advantage of this procedure followed by
the appellant, the respondent State has denied the appellant the benefit of
interest granted by the High Court vide its order referred to hereinabove.
by the denial of that part of the interest which was due to them under the
orders of the High Court, the appellants again approached the High Court in
writ petition in OJC No.11998 of 2000 wherein the High Court taking a very
narrow view of the matter held that the appellant is entitled only to the
interest that was permissible under Section 14 of the Act.
aggrieved by the said order, the appellants are before us in this appeal.
to be noted that the order of the High Court in earlier writ petition namely
OJC No.1200 of 1995 was made by the High Court in the exercise of its power
under Articles 226 and 227 of the Constitution of India wherein while directing
the appellants to deposit the amount quantified therein, the High Court also
issued a direction to the respondent State that it should refund the amount
with interest at the rate of 18% per annum in the event of the appellants
succeeding in the second appeal.
order is definitely not one made under the provisions of the Act. The
respondent State which took benefit of the said order and retained the amount
deposited by the appellant, cannot now be permitted to say when it comes to
refund direction issued by the High Court in its order dated 15.3.1995 will not
be binding on it and it is only the provisions of the statute that will bind.
noted above, it is not by invoking the provisions of the Act, the deposit was
directed to be made by the High Court, hence, any direction made while making
an order under Articles 226 and 227, to deposit any sum of money will be
governed by the conditions imposed in the order directing such deposit. On the
contrary if any such condition as to the interest had not been made by the High
Court while directing the deposit of the amount then it could be said that the
refund which may become payable will be governed by the provisions of the State
Act. In the instant case, since the very order which directed the deposit
itself has directed the refund with 18% interest, we have no doubt in holding
the said order as to mean that the refund should be made with interest at the
rate of 18% from the date on which the amount was deposited pursuant to the
order of the High Court dated 15.3.1995.
the reasons stated above, this appeal succeeds and the same is allowed.