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2010 (7) TMI 937 - HC - VAT and Sales TaxWhether the assessee has collected sales tax on the subsidy and has not passed on the said collected tax to the Department as contended by the Department? Held that:- The order passed by the assessing officer directing the assessee to make good the difference in the amount which they have collected and which they have actually paid is strictly in accordance with law. The Tribunal committed a serious error in proceeding on the assumption that tax is collected on the net amount excluding the subsidy. The amount of tax is collected before giving deduction to the subsidy. Thus though subsidy amount is deducted but tax collected on subsidy is not deducted. Therefore the difference in amount which the assessee has no right to retain is now ordered to be paid to the Department by the forfeiture order. Therefore, the Tribunal was not justified in interfering with the well considered order passed by the first appellate authority as well as the assessing officer. In that view of the matter, the order of the Tribunal cannot be sustained. Hence the order passed by the assessing officer as confirmed by the appellate authority is restored.
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