Penalty for tax collection applies only when amounts are realised as sales tax or purchase tax, not as contingent liability.

Penalty under the unamended section 15A(1)(qq) of the U.P. Trade Tax Act applies only where an amount is realised as sales tax or purchase tax, and not where it is collected under another description such as contingent liability refundable. The note also records that the objection of denial of hearing was rejected because the State Representative was present and heard, despite the adjournment request being declined. On the stated facts, the earlier tax-rate dispute and the dealer's bona fide belief did not bring the collection within the penalty provision, and the penalty quashing order was sustained.

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Issues: (i) Whether the revisional order was vitiated for want of proper opportunity of hearing to the State Representative. (ii) Whether penalty under section 15A(1)(qq) of the U.P. Trade Tax Act, 1948 was leviable where the amount recovered from buyers was described as contingent liability refundable and not as sales tax.

Issue (i): Whether the revisional order was vitiated for want of proper opportunity of hearing to the State Representative.

Analysis: The adjournment request was rejected, but the record showed that the State Representative was present and was heard. The matter was taken up in special circumstances, and the Court found no substance in the contention that the revision was decided without hearing the department.

Conclusion: The objection based on denial of hearing was rejected.

Issue (ii): Whether penalty under section 15A(1)(qq) of the U.P. Trade Tax Act, 1948 was leviable where the amount recovered from buyers was described as contingent liability refundable and not as sales tax.

Analysis: The unamended provision applied only when an amount was realised as sales tax or purchase tax. The amount in question was not charged as tax but as contingent liability refundable, and the surrounding facts showed a bona fide belief on the dealer's part. The earlier dispute regarding the rate of tax did not justify treating the collection as tax realisation within the unamended provision.

Conclusion: Penalty under section 15A(1)(qq) was not leviable.

Final Conclusion: The Tribunal's order quashing the penalty was sustained and the revisions were dismissed.

Ratio Decidendi: Penalty under the unamended section 15A(1)(qq) lies only when the amount is realised as sales tax or purchase tax, and not when it is collected under another description such as contingent liability refundable.

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