THE STATE OF BIHAR vs RAT BAHADUR HURDUT ROY-MOTT LALL JUTE MILLS & ANOTHER (an

The Supreme Court held that the forfeiture of sales tax collected by a registered dealer under the Bihar Sales Tax Act, 1947, requires proof of contravention of specific statutory provisions. The Court ruled that the imposition of forfeiture under the proviso to Section 14A necessitates showing that the dealer acted contrary to the conditions prescribed by the Rules. Furthermore, with the retrospective insertion of Section 33, which prohibits tax on sales outside the State, the Court concluded that the sales in question were outside the Act's scope, thus no tax could be imposed on them.