9911796707
TMI Blog1980 (11) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1941, which was applicable at the relevant time, a dealer was required to furnish quarterly returns accompanied by a receipt showing payment in a Government treasury or the Reserve Bank of India. A provision was also made that the payment of tax could be made by cheque in which case no receipt accompanied the return. In the first quarter of the year 1971-72, the dealer tendered a cheque for Rs. 821.63 along with his return. On the dishonour of the cheque, a penalty of Rs. 4,000 was imposed which was reduced in appeal to Rs. 3,000. On revision to the Financial Commissioner, it was held that section 11(3a) did not apply to such cases and, hence, the penalty was quashed. The order did not give any reasons, but was based on a previous dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of law which have some bearing on this question are section 11(1), and section 11(3a) which was introduced into the Act by an amendment made in 1959. The two provisions can now conveniently be quoted: "11. (1) If no returns are furnished by a registered dealer in respect of any period by the prescribed date, or if the Commissioner is not satisfied that the returns furnished are correct and complete, the Commissioner shall, within eighteen months after the expiry of such period, proceed in such manner as may be prescribed to assess to the best of his judgment the amount of the tax due from the dealer and in making such assessment shall give the dealer a reasonable opportunity of being heard; and in the case of failure by a registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed without paying the corresponding tax, and the provisions of section 11(1) which deal with the failure to file the return and other defaults are not attracted. Section 11(3a) actually applies in two separate cases. It applies when tax is not paid along with the return as required by section 10(3), or it applies when after the assessment has been made and there is a failure to pay the tax. As pointed out by the learned counsel for the Commissioner of Sales Tax, a default arising by reason of dishonour of a cheque is a much earlier default which can be detected almost immediately; it does not require completion of the assessment before a penalty can be imposed. The learned counsel has also brought to our notice that this case is cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
