https://www.taxtmi.com/caselaws?id=158008 Penalty under section 22(2) of the Tamil Nadu General Sales Tax Act, 1959 arises only where tax is collected in contravention of section 22(1). The Madras HC noted that the Tribunal had already found the assessee's collection of tax and surcharge on rebate and cash discount to be lawful. On that basis, the mere failure to refund or pass on the collected amount could not independently attract penalty under section 22(2). The direction to levy penalty was therefore unsustainable and was set aside in favour of the assessee. en-us Thu, 24 Nov 1994 00:00:00 +0530 Tue, 15 Oct 2013 11:41:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158008 Penalty under section 22(2) of the Tamil Nadu General Sales Tax Act, 1959 arises only where tax is collected in contravention of section 22(1). The Madras HC noted that the Tribunal had already found the assessee's collection of tax and surcharge on rebate and cash discount to be lawful. On that basis, the mere failure to refund or pass on the collected amount could not independently attract penalty under section 22(2). The direction to levy penalty was therefore unsustainable and was set aside in favour of the assessee. Case-Laws VAT and Sales Tax Thu, 24 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158008