The excess tax collected from the petitioner under the CST Act cannot be forfeited by the respondent authorities the same is required to be refund
Refund— The questions of law which arise for consideration are (i) whether the excess tax collected from the petitioner under the CST Act can be forfeited by the respondent authorities or the same is required to be refunded and (ii) whether the respondent-assessee is eligible for refund of central sales tax paid by it contrary to the provisions of Section 9A of the CST Act or whether the appellant- Revenue was entitled to forfeiture of the excess central sales tax deposited by the respondent-assessee.
the respondent-assessee cannot be said to have collected the CST at the rate of 10% or 12% from its buyers/receiver of the goods in view of the contract of fixed price, there is no question of passing over the same to its buyer in view of the decisions of the Apex Court in the case of Mafatlal Industries Ltd. Even otherwise the provisions of the CST Act do not contemplate any power to forfeiture of refund by the Revenue.
The provisions of Section 31 of the VAT Act enabling the Assessing Officer to forfeit the excess amount of tax deposited by the assessee cannot be applied to the provision of the CST Act.
in the absence of any power with the Revenue to forfeit such excess tax, the respondent assessee is entitled to refund of the same.
The Appeal deserves to be dismissed and re-framed questions of law are answered in favour of the assessee and against the Revenue. The appeal fails and is accordingly dismissed.