Central sales tax demand beyond assessed tax held without jurisdiction; excess recovery cannot exceed the tax lawfully assessed.

Under the Central Sales Tax Act, the assessing authority had no jurisdiction to demand from an assessee any amount beyond the tax lawfully assessed on its turnover. The challenge succeeded because a demand exceeding the assessed tax was held illegal and without authority, and any excess allegedly collected could not be recovered through a larger demand. The separate argument based on exemption under the amendment enactment was left open for pursuit in the statutory remedies.

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Issues: Whether the assessing authority had jurisdiction under the Central Sales Tax Act, 1956 to demand from the assessees amounts in excess of the tax assessed on their turnover.

Analysis: The assessment orders and demand notices were challenged on the footing that the authority could recover only the tax actually assessed, not any larger amount said to have been collected by the assessees as tax. The governing principle applied was that the taxing authority under the Act had no power to demand an amount exceeding the assessed tax. Any excess collected, if at all, could not be recovered through a demand in excess of the assessment. The separate contention based on exemption under section 10 of the amendment enactment was expressly left open for pursuit in the statutory remedies.

Conclusion: The demand for amounts in excess of the tax assessed was without jurisdiction and illegal, and the petitioners succeeded on this issue.

Ratio Decidendi: A taxing authority cannot, under the Central Sales Tax Act, recover from an assessee any amount in excess of the tax lawfully assessed on the turnover.

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