9911796707
TMI Blog1970 (12) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... obtained against 'C' forms, within a year. Apparently, the penalty was imposed under section 10-A(1) by reference to the offence mentioned in section 10(d) of the Central Sales Tax Act. Section 10(d) makes a person punishable, if after purchasing any goods for any purpose specified by section 8(3)(b) he fails, without reasonable excuse, to make use of the goods for such purpose. The assessee appealed against the order, and the appeal was allowed by the Assistant Commissioner (judicial), Sales Tax, on two grounds, one being that the assessee had not been allowed an opportunity of showing cause against the penalty, and the other being that the penalty proceedings were taken without the prior sanction of the Commissioner of Sales Tax. A revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no general sales tax law in force, the Central Government may, by rules made in this behalf, make necessary provision for all or any of the matters specified in this subsection, and such rules may provide that a breach of any rule shall be punishable withfine which may extend to five hundred rupees; and where the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues." Recently, however, Parliament enacted the Central Sales Tax (Amendment) Act, 1969, which has substituted a new provision in place of the original section 9. The newly enacted section takes effect retrospectively as from the date of the commencement of the principal Act, and sub-section (2) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r all or any of the matters specified in this sub-section." Analysed, the sub-section provides that the authorities empowered to assess. reassess, collect and enforce payment of tax under the State sales tax law shall on behalf of the Government of India assess, reassess, collect and enforce payment of tax, including penalty payable by a dealer under the Central Sales Tax Act as if the tax or penalty payable by such dealer under the Act was a tax or penalty payable under the State Sales Tax Act. It specifically provides that for that purpose the authority may exercise all or any of the powers it enjoys under the State Sales Tax Act and the provisions of such Act, including the provisions relating to penalties, would apply accordingly. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he two can be considered apart. That being so, it seems clear to us that when the assessing authority exercises his power under section 15-A of the U.P. Sales Tax Act for the purpose of imposing a penalty under section 10-A of the Central Sales Tax Act, by virtue of the operation of section 9 of the Central Sales Tax Act, it must be taken that he was subject to the limitation contained in section 15-A(5) mentioned above. Inasmuch as the condition contained in section 15-A(5) was not fulfilled, we hold that the proceedings taken by the assessing authority for imposing the penalty in question on the assessee are proceedings without jurisdiction. Reliance is placed by the learned counsel for the Commissioner on Guldas Narasappa Thimmiah Oil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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