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TMI Blog1970 (11) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 2nd quarter was in time; the return for the 3rd quarter was late by 43 days; and the return for the 4th quarter was in time. The total turnover shown in the returns, which related exclusively to the sales made to the Garrison Engineer, was Rs. 2,00,629.11. Some bills were also submitted by the dealer after the filing of return. The Sales Tax Officer did not accept the accounts of the assessee and made a best judgment assessment. He assessed the total sales to the Garrison Engineer at Rs. 2,91,385.91. He also held that in the absence of proper accounts maintained by the assessee, the possibility of sales to other departments or customers could not be ruled out. The gross turnover of the assessee was, for this reason, determined at Rs. 3,20,000. In addition to the tax assessed on this turnover, the petitioner was made liable to penalties of Rs. 100, Rs. 3,500, Rs. 200 and Rs. 20 respectively under sections 17(3), 43(1), 27(2) and rule 69-A of the Madhya Pradesh General Sales Tax Act, 1958. The petitioner went up in revision before the Deputy Commissioner of Sales Tax, who accepted the contention that there was a mistake in assessing the sales made to the Garrison Engineer and reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecember, 1966. In his statement the petitioner said that he manufactured all kinds of furniture which he supplied to the M.E.S. He admitted that he occasionally sold fuel-wood, saw-dust, etc. This probably referred to the sale of the waste products of his main business. He also admitted that previously he used to manufacture and sell sofa sets, etc. As regards the accounts, the petitioner said that the accounts were maintained as directed by his lawyer and they were also kept with the lawyer. The inquiry report of the Inspector disclosed that the petitioner admitted that he sold sofa sets and other furniture to the public. Six pairs of sofa sets were also found in the shop. It was also reported that the petitioner carried on business also in some name other than the one under which he was registered as a dealer. According to this report the yearly turnover was estimated between Rs. 3,50,000 and Rs. 4,00,000. In our opinion, the inquiry report of the Sales Tax Inspector and the statement of the petitioner made to him were sufficient materials to hold that the petitioner's business was not limited to supplying furniture to the Garrison Engineer and that he was also making sales to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sometimes come across cases which fall on the fringe where it may be difficult to decide whether the guess-work has been "wild" or "honest". In such cases, this court will not interfere under article 226, as the error, if any, in making the assessment will not be apparent on the face of the record. Having regard to these principles of law, we are not prepared to hold that the assessments impugned in these petitions bore no reasonable connection to the circumstances of the cases and the material available in them. It was also contended by the learned counsel for the petitioner that the Sales Tax Officer did not disclose to him the inspection report of the Inspector and he had no opportunity to meet the adverse allegations contained in it. This argument cannot be accepted. The assessment order in each case was passed long after the receipt of the Inspector's report and there were many hearings in-between on which the petitioner attended. It is unlikely that he did not know the contents of the report. No complaint of this nature was made to the Deputy Commissioner in revision and even in the petitions filed in this court there is no clear averment that the petitioner had no knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll or cash memorandum under section 27 are prescribed by rule 50, which reads: "Rule 50. Every dealer who is required under sub-section (1) of section 27 to issue a bill or cash memorandum shall specify in the bill or cash memorandum issued by him the full name and style, the address of his place of business and the number of his certificate of registration, the particulars of goods sold and the sale price thereof, and shall for each year serially number such bill or cash memorandum, and where the sale price is not less than Rs. 200 the dealer shall also enter in the bill or cash memorandum the full name and address of the buyer and his registration number, if any." 7.. Before a dealer can be made liable to comply with section 27 it has to be shown that in the previous year his turnover exceeded rupees fifty thousand. There was no evidence to show that in the year 1962-63 the dealer's turnover exceeded rupees fifty thousand and, therefore, it cannot be said to be established that the dealer was obliged to comply with the requirements of section 27 in 1963-64. The imposition of penalty of Rs. 200 under section 27(2) for non-compliance with section 27(1) in the year 1963-64 was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered dealer who "fails without sufficient cause to furnish under the sub-section [section 17(1)] his return for any period" makes himself liable to penalty. Now, a return that-is submitted late is also one that is furnished under section 17(1) and, therefore, if a return is submitted late by a dealer, it cannot be said that the dealer has failed to furnish return under section 17(1). For this reason, a dealer who has merely furnished his returns late cannot be subjected to penalty under section 17(3). As the petitioner was made liable to penalty for late filing of his returns, it must be held that the penalties imposed under section 17(3) were unauthorised. 9.. The learned counsel did not challenge the penalty imposed under rule 69-A. 10.. As a result of the aforesaid discussion, the petitions are partly allowed and the penalty imposed under section 27(2) in the assessment orders for the year 1963-64 and the penalty imposed under section 17(3) in the assessment orders for both the years are quashed. There shall be no order as to costs of these petitions. The security deposits shall be refunded to the petitioner. Petitions partly allowed. - - TaxTMI - TMITax - CST, V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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