SUBHASH IRON AND STEEL ROLLING INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) M/s. Subhash Iron and Steel Rolling Industries had filed the second appeal in the Gujarat Sales Tax Tribunal at Ahmedabad against the order of the learned Assistant Commissioner of Sales Tax, Ahmedabad, who had dismissed its first appeal against the order of forfeiture of the amount of Rs. 27,104 passed by the learned Sales Tax Officer of Ahmedabad dated 15th November, 1971, in respect of the period from 7th April, 1967, to 31st March, 1968, as the relevant year of account.

(2.) ?The facts of the case may shortly be stated as under :

(3.) ?The case of the department was that the assessee had issued sale bills to its customers so as to charge and recover sale price as being specifically "inclusive of sales tax" while effecting the resales in question. The learned Sales Tax Officer found that since the assessee's sale bills were inclusive of tax, it had collected an amount of an amount of Rs. 27,104 in all by way of tax from the customers even though the assessee itself was not liable to pay any such tax on those resales. In the opinion of the learned Sales Tax Officer, the collection of Rs. 27,104 was an illegal collection by way of tax and thereby the assessee violated the mandatory provisions contained in sub-section (2) of section 46 of the Bombay Sales Tax Act, hereinafter referred to as "the Bombay Act". Invoking sec. 37(1) and sec. 46(2) of the Bombay Act, the learned Sales Tax Officer forfeited the aforesaid illegal recovery of the amount of Rs. 27,104. The Sales Tax Officer in his order dated 15th November, 1971 (annexrue III), has stated to the effect that the assessee had been given deduction in respect of those resales and as the assessee had prepared the bills of the resale as "inclusive of tax", the said collection is deemed to be unauthorised, and after hearing the assessee, it is decided to forefeit the amount of Rs. 27,104. The learned Sales Tax Officer also imposed penalty of Rs. 585 upon the appellant in terms of sub-section (3) of sec. 36 of the Bombay Act on the ground that the assessee had not paid the tax due within the prescribed time, but we are not in the present reference concerned with the imposition of the penalty.