9911796707
TMI Blog1991 (4) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... The rate of tax on the sale of chemicals of all kinds is quite higher than the rate of tax applicable to the sale of insecticides and pesticides. 2.. The assessee throughout has been contending that the copper sulphate sold by the assessee falls within entry No. 117 while the Revenue has been contending that the subject was covered by entry No. 79. In the year 1963 there was a circular issued by the Commissioner under the Act stating that the copper sulphate was covered by entry No. 79. The assessee protested and has been agitating with the Government insisting that the copper sulphate should be taxed only under entry No. 117. 3.. However, in the meanwhile the assessee continued to collect tax at the rate applicable to entry No. 79, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tax under entry No. 79 was by abundant caution, since there was a circular issued by the Commissioner under the Act which was binding on all the authorities and the collection was not by way of any misuse or contravention of the provisions of the Act. The assessing authority insisted that the assessee should undertake to refund the excess collections to the customers from whom the excess tax has been collected. 5.. The assessee went up in appeal to the Deputy Commissioner, who also dismissed the appeal on the ground that the assessee had not effected any refund of the tax collected from the various customers from whom excess amounts had been collected and that the assessee was not prepared to file an undertaking that the amount of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted any tax which was not lawfully leviable and whether the assessee collected a higher amount by way of tax than the one lawfully leviable with full knowledge that such a collection was illegal. If there was any doubt about the rate applicable or the leviability of the tax in respect of a particular item, then such an intention on the part of the assessee to enrich himself by collecting a non-refundable tax, cannot be inferred. In the instant case, the assessee was, no doubt throughout agitating that the tax should be at the most leviable under entry No. 117. But that by itself is not a ground to hold that the assessee collected the tax from the assessee's customers by applying entry No. 79 solely on the ground of enriching itself. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or collecting the higher tax which was held to be totally unjustified by the Madras High Court. The relevant observations are found at page 163, which is as under: "Thus, on the facts and the circumstances of this case, the penalty is sought to be levied on the assessee for approaching the Tribunal and getting a decision that the turnover relating to the sales of cloth bags is taxable only at 2 per cent. The department having right through proceeded on the basis that the rate of tax on the sale of cloth bags is only at 4 per cent and having resisted the assessee's claim that it is taxable only at 2 per cent and having driven the assessee to go before the Tribunal to get a decision and the Tribunal having given a decision in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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