2010 (2) TMI 1102

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....oducts had filed its returns and the assessments were completed for the years 1994-95 up to 1997-98. Pursuant to a decision of the apex court in the case of Kothari Products Ltd. v. Government of Andhra Pradesh [2000] 119 STC 553, it was held that the State Government had no authority to impose sales tax on the sale of gutka. Thereafter, the assessing officer rectified the assessment orders under section 25A of the Act and granted exemption from levy of tax on the sales turnover of gutka. However, the assessing authority had passed an order under section 18AA of the Act forfeiting the tax paid by the respondent on the said product for the relevant period. The respondent being aggrieved by the said order passed under section 18AA of the Act ....

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.... levy tax on the said products. There fore, in the matter of considering the exemption from levying of sales tax, the assessing authority is justified in passing an order under section 18AA of the Act forfeiting the amount of tax because the said decision was rendered after the assessments had attained finality which order was rightly affirmed by the first appellate authority and the Tribunal was not justified in setting aside the said order which was resulted in loss of revenue to the State. He therefore submits that the Tribunal's order has to be set aside and the order of the assessing authority confirmed by the appel late authority has to be affirmed in this appeal. Per contra, the learned counsel appearing for the respondent-assesse....

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....n initiated by the intelligence wing of the Department out of its profits. Pursuant to the decision of the Supreme Court in Kothari Products Ltd. [2000] 119 STC 553, it became clear that the State was not at all entitled to levy sales tax on gutka and accordingly assessing authority was duty-bound to return the amount which was collected by way of sales tax from the assessee. It is under those circumstances that an application was made by the assessee which was allowed. But the assessing authority passed an order under section 18AA of the Act forfeiting the amount paid as tax by the respondent. While passing the order under section 18AA of the Act, the Deputy Commissioner of Commercial Taxes has stated that: "It is seen from the assessment ....