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TMI Blog2024 (6) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... h a situation where a dealer in bullion or ornaments or wares or articles of gold, silver or platinum group metals including diamond, who has chosen to pay tax at the compounded rate under Section 8 of the KVAT Act, in lieu of the normal rate under Section 6 of the KVAT Act, is permitted to collect tax from the person to whom he has sold goods at the prescribed rate. The second limb of the said provision clarifies that if the tax so collected during the year is in excess of the tax payable for the year then the tax collected in excess shall be paid over to the Government in addition to the tax payable under Section 8 (f) - if a dealer collects tax at a rate different from the rate prescribed in the first limb of the proviso/Section 8 (f) (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions deal with a common issue, they are taken up together for consideration and disposed by this common order. 2. The State of Kerala, who is the petitioner in all these O.T. Revisions, has raised the following substantial questions of law: (a) Whether on the facts and the circumstances of the case the Appellate Tribunal has erred in law in holding that even though the respondent has collected tax at the rate in excess of the rate permitted, the said collection cannot said to be excess collection, since the tax liability of the respondent is higher than the tax so collected? (b) Whether in the facts and circumstances of the case the Appellate Tribunal ought to have held that in the case of collection of tax in excess of rate permitted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.) April 24382480.00 22355410.00 2027070.00 May 27124257.00 24931242.00 2193015.00 June 19778517.00 18196339.00 1582178.00 July 15366028.00 14635020.00 731008.00 Total 86651282.00 80118011 6533271.00 It will be apparent from the above tables that the respondents/assessees had collected tax at rates higher than what was prescribed under Section 8 (f). The Department therefore initiated action against them for recovery of the excess amounts collected by them by relying on the statutory provisions which made it clear that a dealer who opts for payment of tax under Section 8 (f) may collect tax at the rate as shown in the table/proviso but where the tax so collected during the year is in excess of the tax payable for the year under the clause, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n bullion or ornaments or wares or articles of gold, silver or platinum group metals including diamond, who has chosen to pay tax at the compounded rate under Section 8 of the KVAT Act, in lieu of the normal rate under Section 6 of the KVAT Act, is permitted to collect tax from the person to whom he has sold goods at the prescribed rate. The second limb of the said provision clarifies that if the tax so collected during the year is in excess of the tax payable for the year then the tax collected in excess shall be paid over to the Government in addition to the tax payable under Section 8 (f). Here, the words tax so collected appearing in the second limb assumes importance. In our view, it must be seen as a reference to the tax that is permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Authority and Local Authorities, and under clause (b), clause (c) (ii) and clause (d) of section 8, alone shall be eligible to collect any sum by way of, or purporting to be by way of tax under this Act: Provided that the dealers who are paying tax under subsection (5) of section 6 are entitled to recover from the buyers the amount of tax paid by him on the purchase value of such goods at the time of purchase. 9. Section 30 (1) clearly envisages a situation where a registered dealer is permitted to collect tax at the rates specified in Section 6. Thus, the provision, even if it applies in respect of registered dealers who pay tax under Section 8, cannot apply to cases where the dealer is permitted to collect tax only at the rates specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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