1968 (8) TMI 181

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....nt made under section 12 disclosed that the tax really payable by the dealer was only Rs. 900. So there was a refund of the sum of Rs. 581.28 which represented the excess collection. But by then a penalty had been imposed on the dealer for default in the payment of the tax payable under the provisional assessment within the time allotted. The dealer claimed a refund of the amount recovered from him by way of such penalty to the extent of the reduction in the determination of the tax by the final assessment. The Commercial Tax Officer refused the refund of that part of the penalty and the Assistant Commissioner dismissed the appeal preferred by the dealer. But the Sales Tax Appellate Tribunal directed the refund. claimed by the dealer on th....

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.... such time as may be prescribed. Sub-section (6) declares that the provisional assessment shall be subject to adjustment on completion of the final assessment. Rule 20 of the Sales Tax Rules directs, among other matters, that, if the tax due on final assessment is less than the tax determined by the provisional assessment, the excess tax paid shall be refunded. Section 12 regulates the final assessment and the assessment so made is subject to appeal under the provisions of Chapter VI. Section 20(5) authorises the appellate authority to pass such orders on appeal as it may think fit. The Appellate Tribunal to which a second appeal lies under section 22 is authorised by the second proviso to sub-section (5) of that section to direct the asse....

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....hich the amount of reduction in appeal or in revision is not tax under the Act, such reduction in a final assessment is also not. Similarly there is as much a supersession of the provisional assessment when it is altered by the final assessment as there is when an order of assessment is varied in appeal or revision. Mr. Shantharaju however contended that we should make a distinction between a case where a provisional assessment is altered by a final assessment and a case where an order of assessment is varied in appeal or in revision. His postulate was that since the provisional assessment operates with all its vigour until a final assessment is made, default in the payment of the amount determined to be due by the provisional assessment en....