asked the Chancellor of the Exchequer whether the amount due to a deceased person in respect of his unpaid postwar credits is brought into account for the purpose of Death Duties; and if so, what valuation is placed upon such credits.

In the event of the taxpayer's death before the date fixed for payment of the postwar credit, the amount of the credit is exempted, by Section 7 (4) of the Finance Act, 1941, from Death Duties payable on his death.

asked the Chancellor of the Exchequer if he is aware that Radiomobile Limited paid to His Majesty's Commissioners of Customs and Excise, in accordance with their ruling dated 14th August, 1946, sums received as Purchase Tax on car radios before 1st April, 1947; that, although such goods did not become liable to Purchase Tax until after 10th August, 1947, a refund has been refused by the Commissioners, because payment was made under mistake of law; and what action he proposes to take.

The answer "None," Sir.

Will the right hon. Gentleman say on what moral justification this money is retained, as it was paid over because of a mistaken ruling by the Excise Department, and will he say how the Government can properly retain this money, which the company is claiming on behalf of its customers?

There has been only one case of this kind. The Government are entitled to retain money received in this way and it would be quite impossible now—going back to 1940—for customers to have this tax refunded to them.

I asked the right hon. Gentleman on what moral justification the Government were keeping the money, which amounts to £12,000? Is it not sheer, rank dishonesty?

Well, Mr. Speaker, at the Treasury we deal with finance and not with morals.

Oh.

When a Government Department makes a mistake of this kind, is the citizen's belief that they know what they are talking about, a mistake of fact or a mistake of law?

We are getting rather hypothetical over this.

May I ask the right hon. Gentleman to make it clear when he says, "We at the Treasury rely on law and not upon morals,"—[HON. MEMBERS: "No."]—whether he is speaking for himself, or the Treasury?

I think the noble Lord has rather twisted what I really meant as a humorous aside.

In view of the cynical nature of the Government reply, I beg to give notice that I shall raise the matter on the Adjournment at the earliest opportunity.