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Issues: Whether the petitioner's collection of tax from its purchasers on resale of goods purchased from entities not yet specified as oil companies attracted Section 65A of the Assam General Sales Tax Act, 1993 so as to justify forfeiture and penalty.
Analysis: The goods purchased by the petitioner were taxable goods and the sellers were not specified oil companies during the relevant period. The purchase transaction therefore did not fall within the exemption contemplated by Section 8 and Explanation 2 thereto. The petitioner had paid tax on purchase and, on resale, collected tax from its buyers by way of reimbursement. Section 65A(1) is aimed at preventing collection of tax on sales of goods on which no tax is payable, that is, exempt goods. Since the goods in question were not exempt and the petitioner was a registered dealer who had already suffered tax, the collection made on resale did not amount to a contravention of Section 65A(1). The reliance on the Supreme Court decision concerning a different statutory scheme was held to be inapposite because the prohibition there was not pari materia with Section 65A.
Conclusion: Section 65A was not attracted, and the order of forfeiture and penalty was liable to be set aside. The writ petitions were allowed.
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