1995 (4) TMI 251

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..... e returns filed by the assessee, for the assessment year 1977-78. The assessee explained that it acted as intermediary between its clients and M/s. Prasad Process Private Limited and arranged to print the calendars and the property in the goods did not pass through it and hence the assessee is not liable to tax on the sales on calendars. The assessee relied upon sales turnover in the returns. Accordingly, the penalty imposed was cancelled. It is against that order, the State is in revision before this Court. 2.. Mrs. Chitra Venkataraman, the learned Additional Government Pleader, submitted that admittedly, the assessee placed orders for printing the calendars and distributed the said calendars to its constituents and collected the value o .....

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..... the assessee paid the charges to the printers and collected the charges for calendars from the constituents, such collection was repaid to the Calcutta party and that therefore there is no sale turnover in the case of calendars, liable to be included in the assessment of the assessee. It is further submitted that in view of the decision reported in Madurai Kaithari Javuli Urpathiyalargal Sangam Ltd. v. State of Tamil Nadu [1980] 45 STC 473 (Mad.) the Tribunal was correct in cancelling the penalty levied by the authorities below. 4.. We have heard the rival submissions. On the scrutiny of accounts, the department came to know the sale turnover of calendars amounting to Rs. 46,500 was not included in the account books. It was also not discl .....

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..... ey, for printing the calendars. The charges for the calendars collected by the assessee from its constituents were also not disclosed in its accounts. There is also no evidence to show that the charges collected for printing the calendars were remitted back to the Calcutta party. Therefore, in the absence of proper materials on record to support the contention put forward by the assessee, we are not in a position to accept the case of the assessee that there is no mala fide intention on the part of the assessee in not disclosing the turnover on sale of the calendars either in the books of accounts or in the returns. In the decision in Madurai Kaithari Javuli Urpathiyalargal Sangam Ltd. v. State of Tamil Nadu [1980] 45 STC 473 (Mad.) it was .....

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