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TMI Blog1967 (4) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessed to tax under section 21, that is to say, on the turnover concealed from or incorrectly disclosed in the return submitted under section 7 and not in any statement submitted by the assessee under the proceeding under section 21 of the Act. It follows therefore that the High Court has correctly answered the first question against the assessee. The power to impose penalty is conferred upon the assessing authority, and he is not required to impose any fixed penalty. Only the maximum amount of penalty is indicated in the appropriate sections. The Judge (Revisions) has pointed out that the assessing authority has not imposed any penalty under section 15-A(1)(c). That order was made within his competence, and unless that order is set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious year or the assessment year as may be applicable within such period, in such form and verified in such manner, as may be prescribed: Provided that a dealer who deals exclusively in goods in respect of whose turnover he is not liable to pay tax need not submit any return: Provided further that the assessing authority may in his discretion extend the date of the submission of the return by any person or class of persons. ................................................................................" The figures given in the return were accepted by the Sales Tax Officer and the assessment was made according to the net turnover of Rs. 665-9-3. Subsequently, the Sales Tax Officer received information that the assessee had imported s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer issued a notice under section 15-A of the Act calling upon the assessee to show cause why penalties should not be imposed upon it for default under section 15-A(1)(b) and (c). Section 15-A(1) of the Act, as it stood at the material time, was to the following effect: "15-A. Penalty for failure to file returns-(1) If the assessing authority in the course of any proceedings under this Act is satisfied that any dealer- (a) has, without reasonable cause, failed to furnish the return of his turnover which he was required to furnish under section 7, or has, without reasonable cause, failed to furnish it within the time allowed and in the manner prescribed; or (b) has concealed the particulars of his turnover or deliberately furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty should be refunded. The order was based on the view that there was concealment of only Rs. 1,077-8-6 which was the difference between Rs. 11,406-4-6 the amount of the tax found due and Rs. 10,328-12-0 the amount of the tax due according to the statement filed in the proceedings under section 21. He imposed the penalty only under clause (b) at one and one-half times the amount of the tax which would have been avoided if the statement filed by the assessee had been accepted as correct. At the instance of the Commissioner, Sales Tax, the Judge (Revisions) referred the following questions of law for the determination of the High Court: "(1) Whether the penalty should have been imposed on the entire turnover assessed to tax under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act does not require the assessee to furnish a return or particulars of its turnover. The notice to the assessee was issued in the present case under section 21 simply requiring it to file a statement in the form accompanying it, namely, Form No. III which is a form not of a return of turnover but of a statement of imports during a particular period. In reply to the notice the assessee furnished a typed statement showing import of sugar valued at Rs. 3,29,020. No form of the notice to be given under section 21(1) is prescribed under the Rules and consequently there is no question of a fresh return of the turnover to be filed by the assessee after receipt of the notice. In our opinion, clause (b) of section 15-A(1) is attracted as soon as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 21(1) the assessee files a fresh statement of its turnover it is still liable to be penalised under section 15-A for concealing or deliberately furnishing inaccurate particulars in the return filed under section 7. In our opinion the provisions of clause (b) of section 15-A(1) are fully applicable to a case where in a proceeding under section 21 the assessing authority is satisfied that there was concealment or inaccurate furnishing of particulars in the return filed under section 7. The default was in the return filed under section 7 and that default continues and is not obliterated even though the assessee in a proceeding under section 21 admits the default and supplies correct particulars of its turnover. We accordingly hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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