HARI PIPES POLLACHI Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is on revision as against the order of the Tamil Nadu Sales Tax Appellate Tribunal, (Additional Bench), Coimbatore, challenging the levy of penalty under Section 22(2) of the Tamil Nadu General Sales Tax Act. THE assessment year under consideration is 1996-97.

(2.) THE assessee herein is a registered dealer. It reported a total and taxable turnover of Rs.1,55,261.00 for the above said assessment year. Since the turnover in question was below Rs.3,00,000/-, there was no liability to pay the sales tax under the charging provisions. Hence, the Assessing Authority viewed that the collection of tax was in violation of the provisions of Section 22(1) of the Act and consequently, he levied penalty under Section 22(2) of the Act. THE assessee filed an appeal before the Appellate Assistant Commissioner, who however dismissed the appeal. THE assessee preferred further appeal before the Tribunal, which once again confirmed the view of the authorities below. Hence, the present revision by the assessee.

(3.) LEARNED counsel for the petitioner pointed out that when the authorities below had found that the turnover is well below the minimum taxable turnover, the question of levying of penalty as such under Section 22(2) of the Act would not arise treating the collection of tax as illegal collection, more so, in the case of goods falling under I schedule attracting tax as given under Section 3(2) of the Act. He further pointed out that the assessee had remitted the tax to the Government as evidenced from the order of assessment and that the tax had been adjusted towards the penalty. Going by the decision of this Court reported in 137 STC 218 " STATE OF TAMILNADU v. SAKTHI SUGARS LIMITED, Section 22(2) of the Act would not have any application herein when the assessee had remitted the tax to the Government. Consequently, the order of the Tribunal has to be set aside.