COMMISSIONER OF SALES TAX Vs. RAMKRISHNA KULVANTRAI

JUDGEMENT

(1.) This is an application under section 61(1) of the Bombay Sales Tax Act, 1959, read with section 9(2) of the Central Sales Tax Act, 1956, whereby the petitioner - the Commissioner of Sales Tax for the State of Maharashtra - has prayed for an order directing the Sales Tax Tribunal to state the case and refer to this court four questions which are set out in paragraph 4 of the petition.

(2.) The facts which have given rise to this application briefly stated are that for the period 1st April, 1963, to 31st March, 1964, the respondents were assessed to inter-State sales tax on a turnover of Rs. 4,53,353, and transactions which were not sales, leave aside inter-State sales, were determined at Rs. 99,640. In respect of this amount of Rs. 99,640, the Sales Tax Officer I, B Ward, Unit III, Bombay, forfeited therefrom a sum of Rs. 19,928, contending that the same had been collected by the respondents by way of sales tax on the said transactions of the aggregate value of Rs. 99,640, which transactions were, as held by him, not sales. The matter ultimately came before the Sales Tax Tribunal in a second appeal filed by the respondents. The Tribunal held that if the transactions in question of the aggregate value of Rs. 99,640 were not sales, there could be no amount collected thereon by way of any sales tax by the seller and that the question of forfeiture of such amount did not arise. The Tribunal further held that under the Central Sales Tax Act, 1956, the assessing authorities had no power to forfeit any such amount or to levy any penalty on any sum collected in contravention of section 9A of the Central Sales Tax Act, 1956. Thereafter the petitioner applied to the Sales Tax Tribunal to state the case to this court, which application was dismissed by the Tribunal. Thereupon the petitioner has approached this court for an order directing the Tribunal to state the case, and refer the question as mentioned hereinabove.

(3.) Section 9A of the Central Sales Tax Act, 1956, provides the follows :