MADRAS CEMENTS LTD. Vs. THE ASSISTANT COMMISSIONER (ASSESSMENT)

JUDGEMENT

(1.) THE petitioner is a dealer in cement. As per the provisions of Section 5D of the Kerala General Sales Tax Act, the petitioner was required to pay additional sales tax at the rate of 15% of the tax that was payable under Section 5 of the Kerala General Sales Tax Act. By a proviso to Section 5D of the Kerala General Sales Tax Act, it was made clear that the levy of additional tax payable under Section 5D would be only for the period up to 31st March, 2003. Going by the said provision therefore, the petitioner was not obliged to pay additional tax under Section 5D for the period after 31.03.2003. The petitioner, however, collected additional sales tax amounts from its customers for the period from 01.04.2003 to 18.05.2003. The total amount collected towards additional sales tax from its customers was an amount of Rs. 63,55,406/ -. Thereafter, the petitioner noted the provisions of Section 5D which made it clear that the levy of additional tax was only for the period up to 31.03.2003. Realising the mistake in collecting additional sales tax for the period subsequent to 31.03.2003, and apprehending that penalty proceedings would be initiated against him for collecting tax that was not authorised in law, the petitioner took prompt steps to refund the amounts collected from the said customers by issuance of credit notes to them. Thereafter, the petitioner filed returns for the months of April and May 2003 showing details of the tax collected and the refund effected. Exts. P1 and P2 dated 10.05.2003 and 10.06.2003 respectively, are the returns filed by the petitioner for the months of April and May 2003. While so, with effect from 01.07.2003, the levy of additional sales tax was reintroduced through the Kerala General Sales Tax (Third Amendment) Act, 2003. The amendment Act brought about two changes to S. 5D, namely: -

(2.) BY a validation clause deemed the amounts collected by registered dealers by way of additional sales tax under Section 5D, for the period between 01.04.2003 to the date of coming into force of the Kerala General Sales Tax (Third Amendment) Act, 2003, to be amounts validly collected under the provisions of the Kerala General Sales Tax Act as amended by the Amendment Act. The validation clause also provided for the dealer to remit the amounts collected to the Government on or before 31.07.2003.

(3.) I have heard Dr. K.B. Mohammedkutty, the learned Senior counsel for the petitioner as also the learned Government Pleader Smt. K.T. Lilly appearing on behalf of the respondents.