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TMI Blog1955 (9) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... n dust and refuse for the quarter ending December, 1951. It was contended by the petitioner that the cotton dust and refuse were exempt from taxation under section 5 of the Mysore Sales Tax Act. The Sales Tax Authorities, disagreeing with that contention, insisted on collection of tax on these items also. As the point was not free from doubt, the petitioner mills, by way of abundant caution, collected tax on these items from their constituents and paid the same to the Sales Tax Department. Later the Sales Tax Department held that the goods referred to above were exempt from tax and thereafter the petitioner mills applied for refund of the amount paid to the Sales Tax Department. The Department contended that once the amount was collected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be the circum- stances under which the amount is collected by the assessee, the amount once collected should be paid to the Government under section 11(2) of the Act. It appears to us that we have to uphold the contention urged on the side of the petitioner-mills as being sound. Section 11(2) of the Mysore Sales Tax Act runs as follows: "Every person who collects any amount by way of tax under this Act shall pay over to the Government within such time and in such manner as may be prescribed such collections as are in excess of the tax paid by him for the period during which the collection was made or in case he has not paid any amount for the period in question, he shall pay over to Government all the amounts so collected by him; and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. The principle enunciated by their Lordships in the above case, we should like to say with great respect, appears to be quite sound and consistent with the spirit underlying section 8B(2) and the intention of the Legislature. The Legislature could not have intended, in enacting section 11(2) of the Mysore Sales Tax Act, to make such illegal collections made by an assessee as a source of income to the State. It need hardly be stated that an assessee who makes such unlawful collections will be responsible to his constituents and liable to refund the same to them. Under these circumstances, we are inclined to answer the question formulated to us in Civil Petition No. 111 of 1954 as follows: "Question: Whether the sum of Rs. 130-15-5 coll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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