1981 (10) TMI 169

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..... ed to do so. He accordingly held that the assessee had contravened the provisions of section 22(2) of the Tamil Nadu General Sales Tax Act read with sub-section (1) of section 3 of the Tamil Nadu Sales Tax (Surcharge) Act, 1971. The collections came to Rs. 4,808.96. The assessing officer levied Rs. 6,213.44 as penalty. The assessee appealed to the Appellate Assistant Commissioner, who confirmed the levy of penalty. The assessee thereafter appealed to the Tribunal. The Tribunal held that the collection of surcharge on the sales of cane jaggery fell outside the purview of section 22(2) of the Tamil Nadu General Sales Tax Act, and that the levy of penalty was illegal. The State has challenged this order of the Tribunal. By the Tamil Nadu Sal .....

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..... s in the present case, the sales were not liable to be taxed, there is no question of collection of surcharge by the assessee. The authorities have invoked section 22 of the Tamil Nadu General Sales Tax Act for levy of penalty. Section 22 runs to the extent relevant as follows: "(1) No person who is not a registered dealer shall collect any amount by way of tax or purporting to be by way of tax under this Act; and no registered dealer shall make any such collection except in accordance with the provisions of this Act and the rules made thereunder." This section prohibits the collection of tax by any person who is not a registered dealer. Sub-section (2) of section 22 of the Tamil Nadu General Sales Tax Act. provides: "(2) If any p .....

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..... in contrast with any penalty payable. If it was the intention of the legislature that the entire gamut of the provisions of the Tamil Nadu General Sales Tax Act were to be applied, then it could have very well said that all the provisions of the said Act would apply to the levy of surcharge. In that event, section 22 of the Tamil Nadu General Sales Tax Act would also have been attracted by reference. However, in the present case, the provision is more restrictively worded, and therefore, on the language of the provision, we do not consider that there is any scope for levy of penalty under section 22 for collection of surcharge. It is true that the assessee who has collected the surcharge in contravention of what is contemplated by the statu .....

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