https://www.taxtmi.com/caselaws?id=150890 A penalty for collecting sales tax on a transaction not exigible to tax was held unsustainable under section 18(1) of the Karnataka Sales Tax Act, 1957. The dealer had collected tax on iron and steel rails despite no liability arising on that sale, and the authorities had imposed a penalty equal to the collection. Applying the controlling principle that a sales tax law cannot compel remittance of amounts collected from purchasers where no tax is leviable, the Tribunal's decision to set aside the penalty was upheld. The revision petition therefore failed, and the cancellation of the penalty remained in force. en-us Tue, 30 Jul 1974 00:00:00 +0530 Fri, 24 May 2013 14:10:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150890 A penalty for collecting sales tax on a transaction not exigible to tax was held unsustainable under section 18(1) of the Karnataka Sales Tax Act, 1957. The dealer had collected tax on iron and steel rails despite no liability arising on that sale, and the authorities had imposed a penalty equal to the collection. Applying the controlling principle that a sales tax law cannot compel remittance of amounts collected from purchasers where no tax is leviable, the Tribunal's decision to set aside the penalty was upheld. The revision petition therefore failed, and the cancellation of the penalty remained in force. Case-Laws VAT and Sales Tax Tue, 30 Jul 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150890