TMI Blog2011 (2) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no contravention, also runs counter to the aforesaid statutory provisions. Therefore the error committed by the Tribunal is patently illegal and cannot be sustained. In that view of the matter, the order passed by the Tribunal is hereby set aside. Hence, Revision is allowed. - S.T.R.P. No. 24 of 2010 - - - Dated:- 4-2-2011 - KUMAR N. AND RAVI MALIMATH JJ. T.K. Vedamurthy for the petitioner Smt. Vani H. for the respondent ORDER The Revenue has preferred this revision against the order passed by the Kamataka Appellate Tribunal holding that the order passed under section 18AA both under the Karnataka Sales Tax Act and the Central Sales Tax Act are illegal and consequently setting aside the same. For the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchase of coffee seeds by the appellant under entry No. 3 of the Third Schedule to the KST Act, 1957? (2) Whether the penalty levied under section 18AA of the KST Act, 1957 regarding CST collected is just and proper? In answering the first point, it was held that the assessee has admitted the purchase of coffee seeds from unregistered dealers and failed to pay tax at the purchase point. Subsequently he paid corresponding tax along with compounding fee. In those circumstances, the assessing authority was justified in invoking section 12A and in making the reassessment. Entry No. 3 of the Third Schedule to the KST Act, exclusively applies to coffee curer and action of the first appellate authority in upholding the reassessment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... travention of section 18 of the Act. It is this finding of the Tribunal, which is challenged by the Revenue before this court. The learned Government-Advocate assailing the impugned order contends that when admittedly the assessee was making purchase from unregistered dealers, there is statutory liability imposed on him under section 6 of the Act to pay purchase tax. Once he pays the purchase tax at the time of purchase, there is a prohibition for him to collect tax on the same goods at the time of selling. In this case, admittedly, he has collected four per cent tax on sales, which is totally prohibited and therefore-authorities rightly invoked section 18AA and forfeited the said amount. Interpretation placed by the Tribunal on the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds as under:- In the case of purchase of any of the goods mentioned in column (2) of the Third Schedule, at the rate and only at the point specified in the corresponding entries of columns (4) and (3) of the said Schedule, on the dealer liable to tax under this Act, on his taxable turnover of purchases in each year relating to such goods. Relevant entry in the Third Schedule reads as under:- Sl. No. Description of the goods Point of levy Period for which applicable Rate of tax 3 Coffee beans and coffee seeds (whether raw or roasted),- At the point of purchase in the State 1-4-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting to be by way of tax in respect of sales of any goods or any transaction on which no tax is payable by him under the provisions of this Act. Therefore the aforesaid provision makes it clear that firstly a person who is not registered as a dealer under the Act has no authority to collect any amount by way of tax from the persons from whom he makes purchases. Secondly, a registered dealer cannot levy and collect tax at a rate or rates in excess of what is prescribed under law. Thirdly, if a dealer is not liable to pay tax under the provisions of this Act, he shall not collect the tax from the person to whom he has sold the goods. In the instant case, the assessee is a registered dealer. Under the provisions of the Act, he is liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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