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2010 (2) TMI 1102 - HC - VAT and Sales TaxWhether the Appel late Tribunal was right in holding that the authorities were not justified in forfeiting the tax amount under section 18AA of the KST Act in the absence of the dealer not establishing the passing of the burden of tax to the customers? Whether, in the facts and circumstances of the case, the sale price includes the tax element warranting the forfeiture of tax collected? Whether, in the facts and circumstances of the case, the Appel late Tribunal was justified in not following the law declared by the apex court in Mafatlal’s case reported in [1996 (12) TMI 50 - SUPREME COURT OF INDIA]? Held that:- Before an order of forfeiture can be made under section 18AA of the Act, it is necessary to have material to show that there has been unjust enrich ment or circumstances which are relevant for making an order of forfeiture should be clear and such material has to be on record before the concerned authority. In the face of the aforesaid opinion expressed by the Deputy Commissioner of Commercial Taxes, wherein the said authority is not sure as to whether sales tax was collected at all by the assessee and as to whether sale bills were inclusive of admissible tax, he could not have concluded that the assessee had an unjust enrichment and therefore order for forfeiture. In our view, the same cannot be held to be just and proper as the said order is based on mere surmises and conjectures. Thus it is just and proper to remand the entire matter to the assessing officer reserving liberty to the respondent to furnish all relevant materials before the assessing officer so that on consideration of the same, appropriate order can be passed under section 18AA of the Act in accordance with law.
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