https://www.taxtmi.com/caselaws?id=100725 A State sales tax law cannot, under ancillary machinery provisions, compel a dealer to deposit amounts collected from purchasers as tax when the State lacks competence to levy that amount as tax. The Court held that legislative power over sales tax extends to machinery for levy and collection of tax lawfully due, but not to a provision that in substance exacts an amount the State could not otherwise impose. The refund mechanism did not alter the character of the levy, because the amount was not held in trust for purchasers and the scheme remained one for recovery of an unauthorised tax demand. The impugned provisions were struck down as beyond legislative competence. en-us Fri, 30 Jan 1970 00:00:00 +0530 Thu, 03 Jul 2014 17:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100725 A State sales tax law cannot, under ancillary machinery provisions, compel a dealer to deposit amounts collected from purchasers as tax when the State lacks competence to levy that amount as tax. The Court held that legislative power over sales tax extends to machinery for levy and collection of tax lawfully due, but not to a provision that in substance exacts an amount the State could not otherwise impose. The refund mechanism did not alter the character of the levy, because the amount was not held in trust for purchasers and the scheme remained one for recovery of an unauthorised tax demand. The impugned provisions were struck down as beyond legislative competence. Case-Laws VAT and Sales Tax Fri, 30 Jan 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100725