📰 𝗔𝗹𝗹𝗮𝗵𝗮𝗯𝗮𝗱 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗗𝗲𝗮𝗹𝗲𝗿𝘀 𝗖𝗮𝗻𝗻𝗼𝘁 𝗪𝗶𝘁𝗵𝗵𝗼𝗹𝗱 𝗥𝗲𝗮𝗹𝗶𝘇𝗲𝗱 𝗧𝗮𝘅 𝗗𝘂𝗲 𝘁𝗼 𝗣𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗳𝘂𝗻𝗱𝘀 📢 Justice Piyush Agrawal stated, "The registered dealer after realizing the tax cannot withhold the same on

the pretext that some excess amount of tax was deposited. The amount realized on the strength of Act, must be deposited and in case any amount found excess, the same will be refunded to the actual person from whom the same amount was realized as tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: M/S Kashi Ram Ved Prakash vs. Commissioner Of Commercial Tax U.P. Lucknow

𝗜𝘀𝘀𝘂𝗲: A penalty was imposed on the revisionist/assessee under Section 15A(1)(a) of the U.P. Trade Tax Act for not depositing the tax realized from UP State Spinning Mills Company Limited.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The Trade Tax Tribunal rejected the second appeal by the assessee against the penalty. The assessee then approached the High Court, arguing that the tax was not deposited due to an entitlement to a refund.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Allahabad High Court upheld the Tribunal's decision, emphasizing that the assessee must deposit the tax realized from the purchasing dealer despite any refund due from assessment proceedings.

The court confirmed that any excess amount should be refunded to the party from whom it was realized and not retained by the dealer.

𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: M/S Kashi Ram Ved Prakash vs. Commissioner Of Commercial Tax U.P. Lucknow 𝗖𝗮𝘀𝗲 𝗡𝗼.: SALES/TRADE TAX REVISION No. - 782 of 2008

📜 This ruling clarifies that dealers cannot withhold tax realized from purchasing dealers under the guise of pending refunds and must comply with statutory tax deposit obligations. #TaxLaw #arr4nirc #AllahabadHighCourt #LegalUpdate