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TMI Blog1996 (12) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... h the request of the petitioner was declined to summon the proprietor of M/s. Hari Chand Narinder Kumar of Amritsar, from whom the Department had alleged that the petitioner made purchases worth Rs. 11,60,917.17. Against the order of respondent No. 1 appeal was filed before respondent No. 2. Transfer application was also filed. In spite of the filing of the appeal and transfer application against respondent No. 1, a penalty under section 10(7) of the Punjab General Sales Tax Act, 1948 was imposed upon the petitioner-firm creating an additional liability of rupees one lac by way of penalty. The petitioner filed an appeal against the orders, annexures P-1 and P-2, before respondent No. 2 who quashed the assessment order on the ground of limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Authority, Amritsar, had admitted the purchases worth Rs. 11,60,917.17. This statement was duly signed by the petitioner. He was duly confronted with the statement. During the course of penalty proceedings the dealer, inter alia, requested that the matter regarding imposition of penalty should be kept pending till the decision of the appeal filed against the assessment order of 1966-67. Since the case regarding the imposition of penalty has been taken up separately and independently, the penalty proceedings had not been stayed by any competent authority. In para No. 6 of the written statement it has been pleaded that from the orders dated January 8, 1980, passed by respondent No. 2 it is very clear that assessment order dated May 14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 975. The petitioner made purchases worth Rs. 11,60,917.17 from M/s. Hari Chand Narinder Kumar but he did not show those purchases in his account books. A perusal of this order would show that the petitioner himself was responsible in delaying the matters and he sought several adjournments right from 1973 to 1974 and finally on September 9, 1974, his request for summoning the proprietor of M/s. Hari Chand Narinder Kumar was declined. On that day, the petitioner did not produce his account books. He tried for further adjournment which was declined as in the opinion of the Assessing Authority the petitioner wanted to prolong the case on one pretext or the other. The petitioner never produced any account books and resultantly the Assessing Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se or incorrect in any material particular, the Commissioner or any person appointed to assist him under sub-section (1) of section 3, may after affording such dealer a reasonable opportunity of being heard direct him to pay, by way of penalty in addition to the tax to which he is assessed or is liable to be assessed, a sum not exceeding two times but not less than fifty percentum of the amount of tax to which he has been assessed or is liable to be assessed excluding the amount to which he has been assessed or is liable to be assessed on the basis of the aforesaid false or incorrect accounts or concealed particulars or false or incorrect account, return or information. 7.. The above provisions would show that irrespective of the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hit by limitation as provided under section 11(4) of the said Act. Vide orders, annexure P-5, it was also held that by striking down the assessment order, annexure P-1, it did not in any way reflect upon the vires of the penalty of rupees one lac imposed under section 10(7) of the Punjab General Sales Tax Act, 1948. Even this Court does not find any wrong in annexure P-8. 8.. Summing up the provisions of section 10(7) are to be construed independently. By setting aside the assessment order on technical ground, the petitioner s liability to pay the penalty does not come to an end. Earlier assessment order, annexure P-1, was not set aside on merits. Rather findings of all the authorities are that petitioner purchased goods worth Rs. 11,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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