1981 (10) TMI 169

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....rchage in respect of sales of cane jaggery, though it was not entitled to do so. He accordingly held that the assessee had contravened the provisions of section 22(2) of the Tamil Nadu General Sales Tax Act read with sub-section (1) of section 3 of the Tamil Nadu Sales Tax (Surcharge) Act, 1971. The collections came to Rs. 4,808.96. The assessing officer levied Rs. 6,213.44 as penalty. The assessee appealed to the Appellate Assistant Commissioner, who confirmed the levy of penalty. The assessee thereafter appealed to the Tribunal. The Tribunal held that the collection of surcharge on the sales of cane jaggery fell outside the purview of section 22(2) of the Tamil Nadu General Sales Tax Act, and that the levy of penalty was illegal. The Stat....

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....e eligible for tax under the Tamil Nadu General Sales Tax Act. As in the present case, the sales were not liable to be taxed, there is no question of collection of surcharge by the assessee. The authorities have invoked section 22 of the Tamil Nadu General Sales Tax Act for levy of penalty. Section 22 runs to the extent relevant as follows: "(1) No person who is not a registered dealer shall collect any amount by way of tax or purporting to be by way of tax under this Act; and no registered dealer shall make any such collection except in accordance with the provisions of this Act and the rules made thereunder." This section prohibits the collection of tax by any person who is not a registered dealer. Sub-section (2) of section 22 of the ....