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2017 (7) TMI 1021 - HC - VAT and Sales TaxRefund of tax remitted by the petitioner - Section 22(2) of the TNGST Act - penalty - natural justice - rejection of refund on the ground that the petitioner did not file the name of the real beneficiary to whom the refund has to be granted either before the Assessing Officer or the Appellate Authority or even before the Tribunal - Held that: - the Tribunal rightly understood the legal effect of such an order of assessment, wherein the turnover of the petitioner fell below the taxable minimum and the rate of tax was nil and therefore, the Tribunal observed that the amount collected by way of tax from the petitioner at ₹ 24003/- has been retained by the Assessing Officer without any demand or invoking any penal provision as provided under Section 22(2) of the TNGST Act. Thus, answer to the question as to whether the respondent can retain the amount of tax is in the negative. In the absence of any provision corresponding to Sections 11-B and 12-A of the Central Excise and Salt Act, 1944, in the Tamil Nadu General Sales Tax Act, it is not permissible for the authorities under the Act to impose a penalty on the sole ground that it is meant to offset a refund, the result of making which would result in unjust enrichment to the dealer. In the case on hand, the Tribunal took note of this legal position and made an observation as to how the Assessing Officer was not justified in retaining the tax amount to his account. The Assessing Officer has assessed the petitioner to a nil rate of tax. Therefore, the respondent is not justified in retaining the amount to himself and the interpretation given by the respondent stating that the petitioner has not produced the name of the ultimate beneficiary or the person who has paid the tax is of no consequence, as the there is no law which empowers the respondent to retain the tax, which was remitted by the petitioner in the absence of any assessment. The petitioner is entitled for the refund of the tax remitted by them - petition allowed - decided in favor of petitioner.
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