ISMAIL, C.J.

This is an appeal against the order of the Board of Revenue (Commercial Taxes) dated 8th August, 1979, suo motu revising the order of the Appellate Assistant Commissioner, Coimbatore. Admittedly the appellant herein collected a sum of Rs. 18, 374 by way of sales tax whereas the transactions were not liable to sales tax under the law. In view of this, the Deputy Commercial Tax Officer took action against the appellant under section 22(2) of the Act levied a penalty. The appellant preferred an appeal to the Appellant Assistant Commissioner and that officer by an order dated 27th May, 1976, which the learned counsel for the appellant himself admitted was not intelligible, set aside the levy of penalty. It is this order of the Appellate Assistant Commissioner that was revised by the Board of Revenue which set aside the order of the Appellate Assistant Commissioner and restored the order of the assessing authority.

The learned counsel for the appellant contended that since the appellant had undertaken and in fact passed credit notes in favour of the customers from whom the appellant had collected the tax, under the judgment of the Supreme Court, the penalty should