TMI Blog2012 (9) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... es tax law as to the procedure in regard to assessment, collection of tax and enforcement of payment of tax and this regime "takes in the scheme for forfeiture of excess tax collected and for reimbursement of the same to the buyers from whom it is collected - Tax Revision Case Nos. 3,4,7,12,27,37 of 1999 - - - Dated:- 13-9-2012 - GODA RAGHURAM AND RAMACHANDRA RAO M.S., JJ. For the Appellant : P. Balaji Varma, Special Government for Commercial Tax, For the Respondent : S. Dwarakanath ORDER :- The order of the court was made by GODA RAGHURAM J.- The six revisions are preferred by the StateRevenue against the common order dated September 2, 1998 of the Sales Tax Appellate Tribunal, Hyderabad Bench, allowing the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee to the Appellate Deputy Commissioner, CT, Hyderabad Rural Division, having been rejected, the assessee preferred further appeals to the Tribunal. The Tribunal observed that there was no substantive provision for forfeiture of sales tax under the CST Act and the provision under section 10 of the said Act for action by way of penalties against contravention of the provision of section 9A of the CST Act does not include forfeiture, held that the Revenue cannot invoke provisions of the 1957 Act under section 9(2A) of the CST Act, to order forfeiture. The assessee's appeals were accordingly allowed. Heard Sri P. Balaji Varma, the learned Special Government Pleader, for Commercial Taxes for the revision petitioner and Sri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dlaw SC 2003, following J.K. Synthetics Ltd. [1997] 106 STC 1 (SC); [1997] Indlaw SC 2185 and Khemka Co. [1975] 35 STC 571 (SC); [1975] Indlaw SC 416, the Supreme Court reiterated that interest could not be levied on delayed payment of CST by reference to provisions of the States' sales tax enactments, in the absence of any substantive provision in the CST Act authorizing levy of interest on delayed payments of CST. In view of the ratio flowing from the judgments in Khemka Co. [1975] 35 STC 571 (SC); [1975] Indlaw SC 416, J. K. Synthetics Ltd. [1997] 106 STC 1 (SC); [1997] Indlaw SC 2185 and India Carbon Ltd. [1997] 106 STC 460 (SC); [1997] Indlaw SC 2003, it follows that forfeiture being a process requiring a substantive provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convincing documents in proof of such collection and forfeiture by the Government, the officer who has forfeited the tax is liable to refund the excess collection to the person for whom it is collected. Section 46A of the Kerala Act was also referred to. This provision enacted a liability of penalty and forfeiture to the Government, of any sum collected by way of a tax or purporting to be by way of tax in contravention of section 22(2) or (3). The Kerala High Court on its analysis concluded that provisions of the CST Act enable application of the local sales tax law as to the procedure in regard to assessment, collection of tax and enforcement of payment of tax and this regime takes in the scheme for forfeiture of excess tax collected and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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