SETHURAMAN, J.

This is a revision petition filed by the State against the order of the Sales Tax Appellate Tribunal, Madurai, dated 16 August, 1976.

The assessee is carrying on business in Madurai in jaggery. During the year 1973-74, the assessee purchased jaggery from agriculturists under bought notes and cane jaggery under pattials and statements of accounts. The assessing officer noticed that the assessee has collected surchage in respect of sales of cane jaggery, though it was not entitled to do so. He accordingly held that the assessee had contravened the provisions of section 22(2) of the Tamil Nadu General Sales Tax Act read with sub-section (1) of section 3 of the Tamil Nadu Sales Tax (Surcharge) Act, 1971. The collections came to Rs. 4, 808.96. The assessing officer levied Rs. 6, 213, 44 as penalty. The assessee appealed to the Appellate Assistant Commissioner, who confirmed the levy of penalty. The assessee thereafter appealed to the Tribunal. The Tribunal held that the collection of surcharge on the sales of cane jaggery fell outside the purview of section 22(2) of the Tamil Nadu General Sales Tax Act, and that the levy of penalty was illegal. The State has cha