2013 (7) TMI 706

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....8/2011:- " 1. Whether the findings of the Sales Tax Tribunal to the effect that there has been excess collection of sales tax supported by the materials on record especially in the light of the findings of another quasi judicial authority that there has been no unauthorized collection. 2.Whether the Sales Tax Tribunal, being the final fact finding authority, was justified in allowing the appeals filed by the State without assigning reasons as to how the first appellate authority went wrong in holding that collection of deposits by the manufacturer did not amount to unauthorized collection of sales tax. 3. Whether the Sales Tax Tribunal ought to have dismissed the appeal holding that the department had not produced any materials to ....

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....respect of the turnover relating to works contract, the assessee is stated to have collected certain sums towards sales tax deposits. While granting exemption in works contract, the Assessing Authority viewed that the dealer had collected the deposit towards sales tax illegally and the same was liable to be forfeited. By order dated 30.11.1998 for the assessment years 1985-86 and 1986-87, the Assessing Authority proposed levy of penalty under Section 22(2) of the Tamil Nadu General Sales Tax Act. As per this provision, as it stood then, levy of penalty to be validly levied has to be within a period of five years from the expiry of year into which the amount has been collected to. The assessee submitted that there was no provision for forfei....

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....ry of the five year period from the expiry of the year in which the amount had been collected, the Sales Tax Appellate Tribunal having not considered the issue on the question of law, the Tax Case Revision has to be allowed. 5. We agree with the submissions made by learned counsel for the assessee. Section 22(2) of the Act prior to its amendment 2004 reads as under:- "If any person or registered dealer collects any amount by way of tax or purporting to be by way of tax in contravention of the provisions of sub-section (1), whether or not any tax is due from such person or dealer under this Act in respect of the transaction in which he collects such amount, the assessing authority may, after giving such person or dealer a reasonable op....