HINDUSTAN CABLES LIMITED Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
HINDUSTAN CABLES LIMITED
STATE OF ANDHRA PRADESH
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L.Ramachenna Reddy, Chairman -
(1.) THESE appeals are filed against the orders of the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad dismissing the appeals filed against the orders of the Commercial Tax Officer, Nacharam Circle. As all the appeals involve common issues, they are heard together and are disposed off by this common order. The particulars of the appeals are as under:
(2.) THE Commercial Tax Officer, Nacharam visited the Administrative Office of the appellant concern at Cherlapalli on different dates and verified the sale invoices raised by the appellant during the months from April, 96 to September, 1996. He noticed that the appellant collected taxes on the sales in the relevant months and paid to the Department less than what was collected each month. The authority came to the conclusion that the appellant collected excess taxes in the relevant months, violating the provisions of Section 30 -B of the A.P. General Sales Tax Act. He, therefore, forfeited the amounts under Sec. 30 -C of the APGST Act in the impugned orders. The appeals filed before the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad against these orders were dismissed. Hence, these appeals. The point for consideration is whether the disputed amounts are not liable to be forfeited.
(3.) THE authority during his visit to the Administrative Office of the appellant concern on different dates verified the sale invoices and came to the conclusion that the appellant collected taxes during the months of April, 1996 to September, 1996 in excess of the tax paid to the Department. He therefore I proposed to forfeit the excess collections. In reply to the notices, the appellant has stated that it had only charged the sales tax component and the same was yet to be collected. It was further stated that the penal provision to forfeit is available only if the alleged excess tax is actually collected by the appellant but not when merely charged in the bills. The appellant has also stated that it is protected against any action in case it refunded the alleged excess collections or made satisfactory arrangement for refunding the amounts to the buyers. The assessing authority has observed that the tax element mentioned in the sale invoices is only collection and it is immaterial whether the appellant received the amount, which it termed as "charged". The authority also observed that the Hon'ble High Court of Andhra Pradesh in W.P. No. 1153 of 1994, dated 29.1.1994 held that under Section 30 -C, the assessing authority can forfeit any amount collected in excess of the tax payable by him or any amount collected towards tax due in contravention of any provision of law only after the same is quantified. It is a fact that the tax collected by the appellant was quantified when the undersigned visited their business premises each time. The collections, if any, refunded to the purchasers after the issue of notices, do not come in the way of forfeiting the said collections.;
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