1991 (8) TMI 325

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... collected sales tax at 4 per cent (multi-point) on the sale of petroleum jelly purchased from Messrs. Nagpal Petro Chemicals Limited, Madras, during the assessment year 1977-78. The assessee-respondent was also finally assessed by the assessing authority on the said turnover at 4 per cent multi-point. It transpires that the Sales Tax Appellate Tribunal, Main Bench, Madras, in another case held th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Act, being 1½ times the tax due on the tax collected in excess was levied. On appeal, the Appellate Assistant Commissioner also held that the assessee-respondent had violated the provisions of section 22(1) warranting levy of penalty under section 22(2) of the Act. The quantum of penalty, however, was reduced to Rs. 3,591, being equal to the excess tax collected. A second appeal was pref....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the circumstances, could be said to be in a bona fide belief that the tax was to be levied multi-point at 4 per cent. It appears to be a case of mutual mistake between the department and the assessee as regards the taxability and the rate of tax, and that being the position, the assessee could not be subjected to penalty where it chose to collect sales tax on the basis of such mutual mistake. The ....