1969 (6) TMI 36

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..... f section 18 and, therefore, no penalty could be levied on them. A number of other contentions were urged before the Commercial Tax Officer including the constitutional validity of section 18-A. The orders impugned refer to the main contention urged by the petitioners, viz., that the provisions of sub-section (1) of section 18 have not been contravened as they have collected tax only at the specified rates. The said objection of the petitioners, however, has not been satisfactorily considered by the Commercial Tax Officer. He has not come to the conclusion that the petitioners have collected tax at rates in excess of the rates specified under the Act. The contention has not been overruled by the Commercial Tax Officer. The reason for comi .....

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..... o Rs. 7,14,264.19 P. The said petitioners collected tax from their customers under section 18(1) only at the rates specified under the Act; but the actual amount collected exceeded the actual amount assessed on the total turnover by Rs. 292.89 P. The Commercial Tax Officer came to the conclusion that the petitioners have contravened the provisions of sub-section (1) of section 18 solely on the ground that the amounts collected by way of tax by the petitioners from their customers exceeded the actual tax assessed on their total turnovers to the extent stated above. Under section 18(1) of the Act, a registered dealer is entitled to collect from his customers any amount by way of tax not exceeding the rate or rates of tax specified in respect .....

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..... only. Thus, a dealer without contravention of the provisions of sub-section (1) of section 18 may collect small amounts in excess of the total tax actually assessed on the total turnover. It may also be possible that the actual amounts collected under section 18(1) may fall short of the amount actually assessed on the total turnover. On a reading of sections 18 and 18-A, it is clear to our mind that the penalty provision of section 18-A is attracted only where a registered dealer makes collection of amounts by way of tax, or purporting to be by way of tax, either not in accordance with the conditions and restrictions prescribed or at the rate or rates in excess of that specified in respect of the sale or purchase of the goods; section 18- .....

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