9911796707
TMI Blog1991 (1) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant time penalty could be imposed under section 15-A(1)(b) of the U.P. Sales Tax Act, 1948 (hereinafter referred to as "the Act ") for concealment of the particulars of turnover and not under section 15-A(1)(c) of the Act. In the present case notice was issued under section 15-A(1)(c) of the Act and ultimately proceedings also culminated in passing of a penalty order under section 15-A(1)(c) of the Act, the Tribunal has taken the view that since section 15-A(1)(c) of the Act was not in existence at the relevant time in regard to penalty for concealment of the turnover, the authorities were wrong in law in imposing penalty in question. Second, penalty notice gives jurisdiction to proceed. Since in the present case penalty notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted as the correct turnover: Provided that no penalty shall be imposed under the foregoing clause (i) except after notice to the dealer, and......." It is, therefore, abundantly clear that the relevant provision to which the penalty was referable was under section 15-A(1)(b) and not under section 15-A(1)(c) of the Act. From a perusal of the impugned order passed by the Sales Tax Tribunal, it is clear that the facts in the present case are not in dispute. The question, therefore, that arises for consideration is as to whether the mere mention of a wrong provision in the show cause notice or even in the ultimate penalty order invalidates the action or not? Admittedly, under the law as it existed at the relevant time penalty could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d concealed particulars of his turnover he may direct such dealer to pay the penalty. The only condition envisaged in the provision of that subsection is that the penalty shall not be imposed without notice to the dealer. It does not mean that it is the penalty notice which gives jurisdiction to the assessing authority. On the other hand, from a reading of the relevant provision it is clear that it is the satisfaction of the assessing authority that concealment of particulars of turnover has taken place which gives him jurisdiction to issue notice. The question relating to issuance of notice is meant only for affording an opportunity to the dealer with regard to the said satisfaction so arrived at by the assessing authority. If we compare t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order on this aspect of matter is also erroneous in law. With regard to the last ground on which the appeal has been allowed by the Sales Tax Tribunal, I find that incorrect finding of facts has been recorded by the Tribunal in this regard inasmuch as from a perusal of the impugned penalty order passed by the assessing authority in this case it is clear that not only the assessing authority had issued penalty notice and had considered the explanation of the assessee in regard thereto but it has arrived at its independent finding in regard to concealment in the penalty proceedings itself and has only referred to the findings arrived at in the quantum matter as one of the circumstances in penalty proceedings. In view of the same, the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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