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TMI Blog1965 (1) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ----------- The judgment of the Court was delivered by SIKRI, J.- These two appeals by special leave are directed against the judgment of the Rajasthan High Court allowing Civil Writ Petitions Nos. 111 and 172 of 1961, and quashing the orders of the Sales Tax Authorities imposing penalties on the respondent, Ghasilal, for delay in payment of tax due. The High Court came to the conclusion that the penalties had been imposed in violation of Article 20(1) of the Constitution, but it is not necessary to deal with this question because we are inclined to accept the contention raised by the learned counsel for the respondent, Mr. Garg, that the penalties have been imposed in violation of the relevant statutory provisions. The releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to deposit the tax due upto date within a week, failing which necessary action according to law will be taken." This notice was served on the respondent the same day. The respondent filed a return for the 4th quarter ending October 22, 1957, and Rs. 11,898-31 was deposited as tax. It appears that on January 8, 1960, March 5, 1960, and March 19, 1960, he deposited Rs. 28,607 as tax in respect of the four quarters of the accounting period October 23, 1957, to. November 10, 1958. It is not clear from the record whether he filed returns on these dates. On April 25, 1960, the Sales Tax Officer made an assessment in respect of the accounting period November 3, 1956, to October 22, 1957, and proceeded to impose a penalty of Rs. 400 under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57, to November 10, 1958, and imposed a penalty of Rs. 1,000 for not depositing the tax in time on the same grounds. The respondent then filed a petition (No. 111 of 1961) under Article 226 of the Constitution on April 3, 1961, challenging the imposition of penalty in respect of the period November 3, 1956, to October 22, 1957, and on April 4, 1961, he filed a petition (No. 172 of 1961) challenging the imposition of penalty in respect of the accounting period October 23, 1957, to November 10, 1958. As we have said before, the High Court allowed the petitions. The learned Advocate-General has raised a number of points before us and particularly invited us to hold that the High Court was in error in holding that there has been contravention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment of tax made for any year under section 10. Section 16. (1) If any person- (a) has without reasonable cause failed to get himself registered as required by sub-section (1) of section 6 within the time prescribed; or (b) has without reasonable cause failed to pay the tax due within the time allowed; or (c) has without reasonable cause failed to furnish the return of his turnover, or failed to furnish it within the time allowed; or ............................................... the assessing authority may direct that such person shall pay by way of penalty, in the case referred to in clause (a) in addition to the fee payable by him, a sum not exceeding Rs. 50 and in the case referred to in clause (b), in addition to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and as there was delay in complying with the notice, there was breach of section 16(1)(b) of the Act. In our opinion, there has been no breach of section 16(1)(b) of the Act, ant consequently, the orders imposing the penalties cannot be sustained. According to the terms of section 16(1)(b), there must be a tax due and there must be a failure to pay the tax due within the time allowed. There was some discussion before us as to the meaning of the words "time allowed", but we need not decide in this case whether the words "time allowed" connote time allowed by an assessing authority or time allowed by a provision in the Rules or the Act, or all these things, as we are of the view that no tax was due within the terms of section 16(1)(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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