Under the Indian law, a voluntary payment of tax is not by itself sufficient to preclude the tax-payers from recovering the amount paid, once it is established that the payment was made under a mistake of law. Even under the English law, the conditional payment of tax by the tax-payer subject to exact assessment of tax by the authorities is recognised as an exception allowing a refund of tax overpaid under a mistake of law.1 However, it may be observed that neither a deliberate disregard of law nor an ignorance of law is a mistake of law (Anath Bandhu v. Dominion of India, AIR 1955 Cal 626). The refund of tax paid under a mistake of law is allowed as a general rule in India.2 In the case of the Sales Tax Officer, Banaras v. Kanhaiya Lal Makund Lal Saraf3, the respondent was a partnership firm dealing in Gold and Silver ornaments and forward contracts in Silver at Banara ....