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TMI Blog1987 (3) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... ales and in the past, the case of the assessee that he made purchases of foodgrain on behalf of ex-U.P. principals, was always accepted. It is against such assessment, that the assessee preferred an appeal before the Assistant Commissioner (Judicial), on 21st April, 1986. No return was filed by the assessee in respect of purchase of foodgrain, made for ex-U.P. principals. While filing the appeal before the Assistant Commissioner (Judicial), the assessee also made an application seeking waiver in regard to deposit of 20 per cent of the amount of tax assessed, under the proviso to clause (b) of section 9(1-B). The contention of the assessee that its financial position was not sound, did not find favour with the Assistant Commissioner (Judicial). He, therefore, directed the assessee to deposit 20 per cent of the amount of tax assessed within 15 days from the date of his order. The assessee further appealed to the Tribunal, which observed: "We are of the opinion that it is a fit case in which 50 per cent waiver should be allowed." This is how in the operative portion, the Tribunal said that the order of the Assistant Commissioner (Judicial), is modified to the extent that 10 per ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is greater, where all the returns for the assessment year have been filed, or (b) the amount of tax or fee due under this Act on the turnover of sales or purchases, as the case may be, admitted by the appellant in the returns, if any, filed by him or at any stage in any proceedings under this Act, or twenty per cent, of the amount of tax or fee assessed, whichever is greater, where some of the returns for the assessment year have not been filed or no return has been filed for such year: Provided that the appellate authority may, for special and adequate reasons to be recorded in writing, waive or relax the requirement of clause (b) in so far as it relates to deposit of twenty per cent of the amount of tax or fee assessed." Sub-section (1-B) raises a complete prohibition against an appeal being entertained, unless the appellant has furnished satisfactory proof of the payment of not less than the amount, as mentioned in clause (a) or clause (b) of sub-section (1-B). Clause (a) is attracted in those cases where all the returns have been filed and clause (b) comes into operation only when some of the returns have been filed or no return has been filed. Clause (a) requires that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , admitted by the appellant in the returns, if any filed, or at any stage in any proceedings under the Act, that is to say, against the admitted liability. Clause (b) does not say that 20 per cent of the amount of tax assessed is required to be deposited before the entertainment of an appeal, if that is greater to nil admitted liability. The cardinal principle of law is that the provisions of fiscal laws should be given strict interpretation and their amplitude should not be liberally widened. Clause (b) so interpreted, supports the contention of Sri Asthana. The word "greater" occurring in clause (b) is a relative term, and therefore, 20 per cent of the amount of tax assessed has to be greater with reference to the preceding portion of clause (b) and that portion refers to only admitted liability and none else. If 20 per cent of the amount of tax assessed, is greater than the amount of tax due under this Act on the turnover admitted by the appellant in the returns, if any, filed, or at any stage in any proceedings under this Act, then only that will have to be deposited. Twenty per cent of the amount of tax cannot be said to be greater in the instant case, as there is no admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us to sub-section (1-B) of the existing section 9, reads thus: "(b) where no return is filed,-the amount of tax or fee due under this Act on the turnover of sales or purchases, as the case may be, admitted at any stage in proceedings before the assessing authority, or twenty per cent of the amount of tax or fee assessed, whichever is greater:" The legislature was well aware that there could not be any admitted turnover when no return is filed and therefore, the legislature used the word "admitted" occurring in clause (b) of the proviso to sub-section (1), with reference to the turnover admitted at any stage in proceedings before the assessing authority. In that clause (b), the question whether 20 per cent of the amount of tax assessed was greater, was to be judged with reference to the amount of tax due under the Act on the turnover admitted at any stage in any proceedings. Clause (b) to sub-section (1-B) of the existing section 9 has to be given the same meaning in the cases of no return, which clause (b) of the proviso to sub-section (1) of section 9, as substituted with effect from 1st October, 1970, contemplated. There is not much difference between clause (b) of the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less, substantial, between the two. The legislative history of section 9, so far as it relates to the precedent condition of deposit before entertaining the appeal, shows that the appellant, was always required to deposit admitted tax when returns were filed, and when no return was filed, the amount of tax due under the Act on the turnover admitted at any stage in any proceedings was required to be deposited. At no stage in the past or in the existing section 9, the appellant, who filed no return and who disputed the tax liability from the beginning, has been required to deposit 20 per cent of the amount of tax assessed, rather, the requirement has been that, either 20 per cent of the amount of tax assessed, or the amount of tax due under the Act on the turnover admitted, either under the returns, if any filed, or at any stage in any proceedings under this Act, shall have to be deposited. Considering the legislative history and taking the semantic view of clause (b) of sub-section (1-B) of section 9, I am of the considered view that the assessee having filed no return, and having disputed the tax liability from the very outset on the purchases of foodgrain, said to have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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