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TMI Blog2005 (3) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... bound to collect at 6 per cent. If the appellant chose not to collect at 6 per cent from their customers, the appellant did so at their own peril. They cannot refuse to pay the respondents tax at the rate in force at the relevant time. - Civil Appeal No. 628 of 2000 - - - Dated:- 2-3-2005 - VARIAVA S.N. AND LAKSHMANAN AR. AND KAPADIA S.H. JJ. Dhruv Mehta and S.K. Mehta, Advocates, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured outside the State were to pay sales tax at 4 per cent. On March 28, 1987, the State issued another notification by which the rate of 2 per cent was raised to 3 per cent and 4 per cent was raised to 6 per cent. 3.. Both these notifications were challenged by one Solidaire India Ltd. on the ground that they were discriminatory. On October 8, 1990, the Karnataka High Court struck down these t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, a demand notice was issued on February 23, 1994. The appellant filed a writ petition in the Karnataka High Court challenging the assessment order and the demand notice. The writ petition came to be dismissed on July 23, 1998. The appeal filed by the appellant has been dismissed by the impugned judgment dated July 20, 1999. 6.. It must be mentioned that the appeals filed against the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have become liable to penalty under section 18A for having collected tax contrary to the provisions of section 18 of the Karnataka Sales Tax Act, 1957. It was also submitted that the appellant did not know about the judgment of the High Court dated October 8, 1990, as that judgment was reported only in 1994. 8.. We see no substance in these submissions. Ignorance of law is no excuse. Once th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the parties were prevented by law, from so collecting, this Court held that the authorities cannot claim the differential tax. 10.. In the present case, as per the law in force, the appellants were bound to collect at 6 per cent. If the appellant chose not to collect at 6 per cent from their customers, the appellant did so at their own peril. They cannot refuse to pay the respondents tax at th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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