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2018 (12) TMI 1358 - HC - VAT and Sales TaxPenalty u/s 22(2) of the TNGST Act - there was no excess collection of sales tax, but there was only recoupment of entry tax collected in excess - Held that:- The Assessing Officer did not dispute the fact that the entire amount of tax collected by the dealer i.e. by way of sales tax at 8% and by way of recoupment of entry tax paid being a sum of ₹ 87,144/- was remitted to the treasury. Unfortunately, the Tribunal committed a factual mistake in stating that the excess amount collected was not paid over to the State. On a perusal of the assessment order dated 27.12.2002 and the erratum order dated 31.1.2003, it is clear that the dealer paid the sales tax as well as collection made by way of recoupment of entry tax into the treasury. Can it be stated that the dealer has contravened the provisions of Section 22(1) of the Act. This question has been answered in favour of the dealer - the levy of penalty made by the Assessing Officer is unsustainable and the First Appellate Authority is right in allowing the appeal - revision allowed.
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