Penalty for excess tax collection requires proof that the amount was realised as tax, not merely as higher price.

Penalty under section 15-A(1)(qq) of the U.P. Sales Tax Act was not leviable because the dealer's excess collection from customers was not shown to have been realised as sales tax or purchase tax beyond the tax legally payable. The provision applies only where an amount is collected as tax and that tax is either not legally payable or exceeds the lawful liability. Section 8-A(2)(b) did not widen the penal provision, as it only permits recovery of an amount equivalent to sales tax in an indirect tax system. Treating the penalty provision as quasi-criminal, the SC required strict proof and held the levy unsustainable.

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Issues: Whether penalty under section 15-A(1)(qq) of the U.P. Sales Tax Act, 1948 was leviable where the dealer recovered amounts from customers in excess of the controlled ex-mill price, but the excess was not shown to have been realised as sales tax or purchase tax in excess of the tax legally payable.

Analysis: Penalty under section 15-A(1)(qq) is attracted only when a dealer realises an amount as sales tax or purchase tax, and the amount so realised is either not legally payable or exceeds the tax legally payable. The controlling question is not merely whether more money was recovered from purchasers, but whether the recovery was made as tax and in excess of the legally payable tax. The reference to section 8-A(2)(b) of the Act did not enlarge the penal provision, because that clause only permits recovery of an amount equivalent to sales tax in an indirect tax system. The Court also treated the penalty provision as quasi-criminal, requiring strict proof before liability can be imposed.

Conclusion: The excess recovery, on the facts found, did not satisfy the statutory ingredients of section 15-A(1)(qq); the penalty was therefore not leviable and the assessee succeeded on this issue.

Final Conclusion: The levy of penalty was unsustainable, and the assessee's challenge succeeded.

Ratio Decidendi: Penalty for excess collection is attracted only when the dealer realises the amount as tax and the amount realised exceeds the tax legally payable; mere excess recovery as price does not fall within the penal provision.

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