1989 (4) TMI 302 - HC - VAT and Sales Tax

Summary

Issues:
Applicability of penalty provision under section 16(1)(b) of the Rajasthan Sales Tax Act, 1954.

Analysis:
The judgment pertains to a revision against an order passed by a Division Bench of the Board of Revenue, concerning the applicability of the penalty provision in section 16(1)(b) of the Rajasthan Sales Tax Act, 1954. The period of assessment in question is from October 18, 1963, to November 1, 1964. The primary contention revolves around the interpretation of the phrase "within the time allowed" in the context of tax payment. The dispute arises from diverging interpretations regarding the commencement of the time period for payment of tax - whether it starts from the assessment order or from the date of filing the return by the assessee. The court emphasizes that the focus is on the time allowed for payment of tax as per the return filed by the assessee, not the additional tax liability determined in the assessment order.

The court clarifies that the time prescribed for payment of tax admitted in the return is as per the Act itself, without waiting for the final liability to be determined by the assessing authority. The judgment highlights the distinction between the tax liability admitted in the return and the one determined in the assessment order. It underscores that the liability to pay tax arises upon ascertainment by the assessing authority or by the assessee, as specified in the relevant sections of the Act. The court also mentions the necessity of considering sub-section (2A) of section 7 in determining the time allowed for payment of tax admitted in the return.

Furthermore, the court notes the absence of any mention of specific facts related to the alleged default justifying the imposition of a penalty under section 16(1)(b) in the case. As a result, the court sets aside the orders related to the imposition of penalties by all authorities and directs a fresh consideration by the original assessing authority based on the clarified interpretation of the relevant provisions. The judgment concludes by partially allowing the revision petition and ordering a fresh assessment without imposing any costs.