9911796707
TMI Blog1991 (10) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... remises was inspected by the Assistant Commercial Tax Officer, Intelligence, on August 5, 1987. After verifying the stock of art silk and pure silk fabrics the officer was of the view that the respondent had committed an offence punishable under section 29(1)(a) of the Karnataka Sales Tax Act (for short "the Act") and a notice to that effect was issued on September 26, 1987 (annexure "B"). Subsequently having regard to the objections raised by the respondent, a notice dated November 7, 1987, under section 29(2)(d) of the Act was issued. It reads: "NO. ACTO/INT/LR/AB/INS/4/87-88 Office of the Assistant Commercial Tax Officer, (Intelligence), LR, South Zone, Bangalore. Dated: 7-11-1987. Revised show cause notice under section 29(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g irregularities were noticed, which amounts to contravention of section 26 of the Karnataka Sales Tax Act, 1957, read with rule 26 of the Karnataka Sales Tax Rules, 1957. (a) Books of accounts not maintained. As explained above, you have wilfully acted in contravention of the provisions of the Karnataka Sales Tax Act, 1957 and is punishable under section 29(2)(d) of the Karnataka Sales Tax Act, 1957. So, I propose to file a charge sheet in the jurisdictional Judicial Magistrate for the above offence committed by you. However, before doing so, you are hereby given an opportunity to appear before the undersigned and compound the offence departmentally under section 31 of the Karnataka Sales Tax Act, 1957. If you are so desirous, you ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 and 31 of the Karnataka Sales Tax Act. 29.. Offences and penalties.-(1) Any person who- (a) fails to submit a return as required by the provisions of this Act, or the rules made thereunder; or (b)........................... (bb) dishonestly objects to or fails to comply with the terms of a notice issued to him under sub-section (1) of section 14; or (c) (omitted by Act 7 of 1966) (d) fails to pay within the time allowed any tax assessed on him or any penalty levied on him under this Act; or (e) fails to keep true and complete accounts; (f) being a dealer or a miller whether he is a dealer or not fails to comply with a notice issued under sub-section (1) of section 28; (g) fails to submit a statement as required by sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urporting to be by way of turnover tax in contravention of sub-section (3) of section 18; or (d) wilfully acts in contravention of any of the provisions of this Act or the rules made thereunder, shall on conviction, in addition to the recovery of any tax or other amount that may be due from him, be punishable with simple imprisonment which may extend to twelve months or with a fine which shall not be less than one thousand rupees but which may extend to five thousand rupees or with both; and when the offence is a continuing one, with a daily fine not exceeding one hundred rupees during the period of the continuance of the offence." "31. Composition of offences.-The prescribed authority may accept from any person who has committed or is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government Advocate would have been unexceptionable. In such cases the compounding fee might exceed Rs. 1,000 and it may be any amount depending upon the amount of tax evaded. In other words the amount of compounding fee could be double the amount of tax evaded. But in respect of other offences the Legislature has fixed the maximum compounding fee of Rs. 1,000. It should also be pointed out that in order to attract clauses 29(1)(d) and 29(2)(c), an assessment order should have been passed against the dealer concerned and if in spite of passing the assessment order he had failed to pay the amount fraudulently or otherwise or had evaded the payment of tax as the case may be. In such a case the maximum amount of Rs. 1,000 fixed under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to contend that the amount demanded was not authorised by law and therefore just because the dealer had accepted to pay the amount and have the offence compounded, he cannot be precluded from challenging the action of the authorities on the ground that the collection of compounding fee beyond the maximum prescribed under the Act was illegal. That is exactly the position in this case, in that the maximum amount that could have been collected as compounding fee was Rs. 1,000 and as double that amount has been collected, the respondent had the right to challenge the legality of the levy. 7.. In the result, we make the following order: The writ appeal is dismissed. Writ appeal dismissed. - - TaxTMI - TMITax - CST, VAT & Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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