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TMI Blog1964 (10) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... at is lawfully due by way of sales tax and not an amount which represents the excess collection. The authorities declined to accept this contention. An appeal to the Appellate Assistant Commissioner also failed. The petitioners have now moved this Court in the exercise of its extraordinary jurisdiction. It is contended that the excess collection is in the nature of a contingent deposit which has to be refunded to the persons to whom the goods were sold. It was further stated that a sum of Rs. 2,791-71 had been so refunded by the petitioners, so that, in any event, the demand for the entire amount, inclusive of this amount which is no longer with the petitioners, is illegal. It is also claimed that neither the Central Sales Tax Act nor t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r upon the Central Government. Subsections (3) and (4) also confer a like power upon the State Government. But the rules made by the State Government shall not be inconsistent with the provisions of the Act or the Rules framed by the Central Government under sub-section (1). The argument of the learned counsel is presented in the following manner. Since section 9-A deals only with amounts collected by way of tax, it is urged that, on the basis of certain decisions, this cannot cover an amount which has been collected in excess of the prescribed rates of tax. In Tata Iron and Steel Company Ltd. v. State of Madras[1954] 5 S.T.C. 382., a similar question arose under the Madras General Sales Tax Act. Section 8-B(2) of the Madras General Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powers of the Legislature of a State cannot in terms be made applicable to a Parliamentary enactment. The Central Sales Tax Act has been enacted in the exercise of the exclusive power which Parliament has with respect to matters enumerated in List I. Entry 92-A covers taxes on the sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of inter-State trade or commerce. There is also a special residuary Entry 97 which reads, "Any other matter not enumerated in List II or List III including any tax not mentioned in either of those lists." The Central Government did not make any rule which would cover the power to recover amounts collected by the dealer, whether they were in excess of the tax lawf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collected by way of tax, inferentially the Central Government must be held to have made a rule in this regard. This argument is to my mind incorrect. Inclusion of the tax collected in a turnover has obviously nothing to do with a rule dealing with the recovery of the tax collected. It is with regard to the former that the Central Government has framed the rule while the State Government has dealt with the latter. There is thus no inconsistency in the rule framed by the State Government with any rule made by the Central Government. I am therefore unable to agree with either line of argument. The demand cannot be challenged as being in excess of the powers conferred by the Act, which derives legislative authority from Entries 92-A and 97 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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