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TMI Blog1981 (10) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... the stage of second sale but the person who effects the second sale is disentitled from collecting sales tax from the purchasers. Under section 22(1) of the Act, no person who is a registered dealer shall collect any amount by way of tax or purporting to be by way of tax under the Act. It is further provided that no registered dealer shall make any such collection except in accordance with the provisions of the Act and the Rules made thereunder. It is quite clear that where a dealer effects a collection of sales tax on a transaction which is not at that stage taxable under the provisions of the Act, then he violates the provisions of section 22(1) of the Act. Section 22(2) provides the consequence of an unwarranted collection of sales tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal observed that the Appellate Assistant Commissioner was justified in reducing the quantum on the basis of a correct calculation. The State has now brought these matters before this Court in revision. We have earlier set out, in brief, the relevant provisions of section 22. Section 22(2) in terms, does not require that the levy of penaly should be based on any finding as to wilfulness or even neglect on the part of the assessee. Nor have the absence of these considerations been provided for by the statute as valid defences for the assessee in proceedings for levy of penalty. It would almost seem that the penalty under section 22(2) follows, as a matter of course, wherever it is found that an assessee has collected sales tax unauthor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal figure of Rs. 1,512. The contention of the learned Government Pleader was that the calculation of the penalty by the assessing authority did not disclose any error in computation. We do not wish to go into the arithmetic of the penalty in this case, when the authorities invested with the requisite power and having the requisite leisure and professional assistance to go into the figures had come to the conclusion that even on the basis of the unauthorised collection of sales tax on second sales by the assessee the levy of penalty cannot exceed Rs. 463. This means the Tribunal was quite justified in dismissing the application made by the department for enhancement of the penalty from the figures at which it was sustained by the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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