SALONAH TEA COMPANY LTD vs SUPERINTENDENT OF TAXES NOWGONG & ORS. ETC.

The Supreme Court held that taxes collected without the authority of law must be refunded, emphasizing that no state can retain such funds. The Court ruled that the appellants' writ petitions were timely and that the claim for refund was valid despite the High Court's earlier dismissal based on delay and laches. The Court clarified that the refund claim was not subject to limitation if it was based on a mistake of law, thus allowing the appeals and ordering the refund of the tax collected under Section 9(3) of the Assam Act.