STATE OF BOMBAY vs M/S. JAGMOHANDAS AND ANOTHER

The Supreme Court upheld the High Court's decision that the respondents' suit for refund of advance sales tax paid for sales outside the State was not barred by limitation under Article 96 of the Limitation Act, as the suit was filed within three years of discovering the mistake of law. The Court clarified that Section 20 of the Bombay Sales Tax Act, 1946 does not bar such suits, as 'assessment' refers to formal assessments under Sections 11 and 11A, and Section 13 does not implicitly bar constitutional objections. The appeal by the State was dismissed.