1975 (9) TMI 159

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..... quarters ending on 30th June, 1968, 30th September, 1968, 31st December, 1968, and 31st March, 1969. There is no dispute about the gross turnover or the taxable turnover of the assessee. Quarterly returns were filed in time and admitted tax was duly credited to the treasury deducting rebate as provided in section 13(8) of the Act. Certain excess collections of tax made by the assessee were also credited to the treasury along with the tax. The Sales Tax Officer found that there were small shortfalls in calculation of rebate as would appear from the tabular statement appended below: -------------------------------------------------------------------------------- Quarter Tax Rebate Tax Rebate Shortfall ending collected claimed payable ad .....

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..... deposited in the treasury. This is exactly what the appellant has done and while claiming the rebate he took into consideration the entire amount of tax paid which was in excess of the tax actually payable and this resulted in difference. The question is if, in the circumstances, the rebate claimed by the appellant can be disallowed. The two conditions prescribed in section 13, namely, the filing of the returns in time and payment of tax by the stipulated date have been complied by him. Therefore, the claim of rebate of 1 per cent cannot be, in any circumstances, disallowed. The excess tax realised by him has been faithfully deposited in Government treasury. There is, therefore, no loss of revenue. Hence the reduction of the rebate claimed .....

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..... r before the due date of payment." The explanation appearing at the foot of the section indicates the due date. Two conditions have been prescribed in sub-section (8) to earn rebate, namely, (i) the entire tax must be paid, and (ii) such payment must be made on or before the due date. In our opinion, the Tribunal was not right in holding that if there is a short credit of the tax, disallowance of the entire rebate was not justified. Rebate is a concession, entitlement to which Is conditional. The conditions must, therefore, be strictly satisfied before the assessee can be found entitled to the rebate. There is no provision in law that If there be a shortfall, the entire rebate cannot be withheld. 5.. In the facts of the case, the positi .....

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