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TMI Blog2019 (2) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... d reducing the quantum to equal amount of tax. The issue arises in the assessment year 1996-97 and is with reference to the sales tax liability on sale of rubber trees. The issue had been engaging the attention of this Court and in a decision reported in 1997 (5) KTR 26 (KER) [M/s. Tropical Plantations Limited v. State of Kerala & Padinjarekara Estates Limited v. State of Kerala] it was finally held that sale of rubber trees would not attract sales tax since the felled trees cannot be brought under the definition of timber. 2. The State took the matter in appeal and the Hon'ble Supreme Court remanded the matter for fresh consideration to the Sales Tax Appellate Tribunal (STAT). The STAT then, found that the rubber tree is used in manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arkose argues that if at all a penalty under Section 46A is imposed, it cannot exceed Rs. 5000/-. There was absolutely no ground for alleging the return to be incorrect since at that point of time there was no tax payable. The deposits collected from the persons to whom the rubber trees were sold were only in lieu of the anticipated liability. If the liability arose the assessee would pay up the amounts and if not, the assessee would refund the deposited amounts to the purchaser. The learned Senior Counsel also points out the earlier orders passed by the department, specifically Ext.P4 wherein an application for refund was rejected on the contention that the assessee had not refunded the amounts to the persons from whom collection was made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchasers of rubber trees who paid up the tax to the assessee could have approached the State producing the evidence of payment and sought for a refund. 8. Ext.P4 pointed out by the learned Senior Counsel according to us does not at all make the assessee's case better, since the assessee's application itself was not properly filed. In fact the Senior Government Pleader points out that Ext.P4 speaks of only forfeiture and no application is seen to have been filed by the assessee. 9. In the above circumstances we find that the assessee having collected the tax the same has to be paid over to the State as per Section 22 of the KGST Act and Rule 18(3) of the KGST Rules. The same having not been done, penalty proceedings initiated a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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