COMMISSIONER OF SALES TAX, U.P. vs AURIAYA CHAMBER OF COMMERCE, ALLAHABAD.

The Supreme Court held that Article 265 of the Constitution mandates that no tax shall be levied or collected without legal authority, and thus, taxes paid without such authority must be refunded. The Court affirmed that the Sales Tax Authorities cannot refuse refunds based on Article 96 of the Limitation Act if the dealer has a legal right to the refund and is not guilty of latches. The appeal by the revenue was dismissed, upholding the orders for refund of sales tax for the years 1948-49 to 1951-52.