Unauthorised tax collection on controlled-price goods attracts penalty despite any price-control argument.

A registered dealer's excess collection of tax on goods with controlled prices still constituted a contravention of section 22 of the Tamil Nadu General Sales Tax Act, 1959. Section 22(2) permits penalty where any amount is collected by way of tax, or purporting to be tax, in breach of section 22(1), even if tax is otherwise due on the transaction. The fact that the goods were subject to price control did not displace the statutory prohibition against unauthorised tax collection. Penalty was therefore properly attracted for collection without authority of law.

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Issues: Whether excess collection of tax by a registered dealer in respect of goods whose price is controlled by law could escape penalty under section 22(2) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Section 22(2) authorises penalty where any amount is collected by way of tax or purporting to be by way of tax in contravention of section 22(1), whether or not tax is otherwise due in respect of the transaction. The saving argument based on controlled prices did not negate the statutory prohibition against collecting tax unauthorisedly. The legal principle that tax cannot be collected without authority of law also supports the conclusion that such collection amounts to a statutory violation.

Conclusion: The excess collection was a violation of section 22 and penalty under section 22(2) was properly attracted. The finding is against the assessee and in favour of the Revenue.

Ratio Decidendi: Any amount collected by way of tax without statutory authority, even if collected on goods subject to controlled pricing, constitutes a contravention attracting penalty under the sales tax law.

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