1995 (4) TMI 269 - HC - VAT and Sales Tax

Summary

Issues:
Penalty under section 12(5)(ii) of the Tamil Nadu General Sales Tax Act, 1959 for delay in filing monthly returns.
Penalty under section 12(5)(iii) of the Act for failure to report textile turnover in the return.

Analysis:
The State petitioned against Sapt Textile Products (India) Limited for not reporting textile turnover of Rs. 68,633 in the return, proposing penalties under sections 12(5)(ii) and 12(5)(iii) of the Act. The assessing officer levied penalties due to delay in filing returns and failure to report turnover. The assessee explained the delay was due to external factors like agitation and strikes. The Appellate Assistant Commissioner reduced one penalty and remitted the other back to the assessing authority. The Appellate Tribunal accepted the assessee's explanations and deleted both penalties.

Regarding the penalty under section 12(5)(ii) for delay in filing returns, the Tribunal accepted the reasons provided by the assessee related to external disturbances, leading to the deletion of the penalty. The Tribunal also considered the revised return filed by the assessee before completing the assessment for the penalty under section 12(5)(iii). As the assessing officer failed to consider the revised return, the Tribunal ruled that no penalty was exigible under this section. The High Court upheld the Tribunal's decision, dismissing the revision petition by the State.

In conclusion, the High Court affirmed the Tribunal's decision to delete both penalties imposed on Sapt Textile Products (India) Limited. The Court agreed with the Tribunal's reasoning that the delay in filing returns was justified due to external factors and that the revised return rectified the mistake, making the penalty under section 12(5)(iii) inapplicable. The State's revision petition was dismissed, and no costs were awarded.