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TMI Blog1978 (8) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... authority imposed penalty both under section 19(1) and section 43(1) of the Act. In appeal, the Appellate Assistant Commissioner set aside the penalty under section 43(1) on the ground that when penalty was imposed under section 19(1), it was not proper to impose penalty under section 43(1) also. The Commissioner of Sales Tax took up the appellate orders in revision and quashed them and maintained the penalty under section 43(1). Against the orders of the Commissioner, there were appeals to the Sales Tax Appellate Tribunal (Board of Revenue). The Tribunal took the view that when penalty was imposed under section 19(1), no penalty could be imposed under section 43(1) for the same default. The question of law referred in these references is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, proceed, in such manner as may be prescribed, to reassess the tax payable by such dealer and the Commissioner may direct that the dealer shall pay, by way of penalty in addition to the amount of tax so assessed, a sum not exceeding that amount: Provided that in the case of an assessment made under any Act repealed by section 52, the period for reassessment on the ground of under-assessment, escapement or wrong deduction shall be as provided in such Act notwithstanding the repeal thereof. 43.. Power of Commissioner or appellate authority to impose penalty.If the Commissioner or the appellate authority in the course of any proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the correct amount of tax. We cannot read section 19 to mean that in every case of reassessment the dealer becomes liable to pay penalty. Penalty is generally imposed for some default, negligence or contumacious conduct of the dealer. The legislature normally does not provide for penalty for innocent acts. If it is held that in every case of reassessment the dealer can become liable for penalty under section 19(1), it would lead to serious hardship. The language used in section 19 is not that express to compel us to take that view. What appears to us is this, that section 19 does not provide for the circumstances in which penalty may be imposed on the dealer. It only empowers the Commissioner to impose penalty at the time of reassessment, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for penalty. These acts or omissions are provided in other sections of the Act. If the Commissioner, while making reassessment, comes to the conclusion that the dealer is liable for payment of penalty under section 43, he can impose penalty under section 19. But as the penalty imposed under section 19 is not independent of section 43, the Commissioner will have no power to impose separate penalty under section 43. 5.. Learned counsel for the department has strongly relied upon the case of Oveekee Textiles v. Deputy Commercial Tax Officer[1971] 27 S.T.C. 439.This case is not of assistance because section 16(2) of the Madras Act, which corresponds to section 19(1) of our Act, is differently worded. Section 16(2) of the Madras Act lay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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