Corporation Bank vs M/S Saraswati Abharansala & Anr

The Supreme Court addressed the issue of sales tax refund under the amended SRO 1075/99, which reduced the sales tax rate from 1% to 0.5% with retrospective effect from April 1, 1999. The Court held that the original notification under SRO 1728/93, which stated that tax collected at a higher rate shall not be refunded, was valid and applicable, thereby denying the refund claim of Rs.20,97,763.50 made by the first respondent. The Court concluded that the amendment did not alter the obligation to remit the higher tax collected, thus upholding the decision of the Assistant Commissioner of Sales Tax.