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TMI Blog1995 (11) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... lf come to the conclusion that penalty under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 in this case had to be levied and that 'as such penalty under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 is upheld', was the Tribunal then justified in setting aside the enhancement in the penalty which was made by the first appellate authority on the ground that the enhancement does not seem to have been made on his own volition." 2.. Briefly stated, the facts of the case are that the non-applicant-assessee is doing the business mainly in edible oils. It was assessed to sales tax for the period Diwali 1977-78 vide order dated September 29, 1980. Later, the record was examined by Audit Cell on March 25, 1983 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 19(1) of the Act as substituted with effect from October 1, 1978 vide Act No. 25 of 1978 empowers the Commissioner to proceed to reassess, within a period of two calendar years from the commencement of such proceedings, the taxable turnover of the dealer and to direct, where the omission leading to such reassessment is attributable to the dealer, to pay by way of penalty in addition to the amount of tax so assessed a sum not exceeding that amount. The aforesaid provision was substituted with effect from October 1, 1978. Earlier this provision, which was in operation from November 1, 1964 to September 30, 1978 did not envisage anything like omission attributable to the dealer. In the old provision, it was provided that the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Commissioner has increased it to Rs. 12,000. But this enhancement does not seem to have been made on his own volition. Order-sheet dated July 19, 1984 refers to the Commissioner's letter No. ST/5B/15-K/84/5299 dated May 3, 1984 where the Appellate Deputy Commissioner was asked in connection with the imposition of penalty. When the Commissioner writes such letter it may be presumed that it may be further enhanced. The Appellate Deputy Commissioners are subordinate to the Commissioner and when any action for enhancement in penalty is taken under a direction of a superior authority the judicial discretion gets inhibited and when any penalty is enhanced under such executive instructions it cannot be said that the appellate authority had act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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