9911796707
TMI Blog2007 (3) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year April 1, 1993 to March 31, 1994 returns in accordance with the Madhya Pradesh General Sales Tax Act, 1958 was submitted by the petitioner to the assessing authority. Even though turnover and the factual aspect of the matter were correctly reflected in the returns filed by the petitioner-establishment, assessment of tax was made at the rate of eight per cent per annum on the ground that as per the Government notification issued on July 17, 1989, being Notification Number 16.6.1989-11 electrical goods were notified to be taxable at the rate of eight per cent per annum under the heading electrical goods, transformers were also included in parts 12 under the subheading passive components, parts and spares. Claiming the transform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. Inter alia, contending that the imposition of the penalty by the revisional authority by modifying the earlier order of the assessing authority is also unsustainable, the petitioners are entitled to total exemption from payment of any penalty, the petitioner seeks interference in the matter. The order passed by the revisional authority is annexure P1 dated March 15, 2004 and the order passed by the assessing authority is annexure P12 dated December 30, 2002. Inviting my attention to the provisions of section 43(1) of the Madhya Pradesh General Sales Tax Act, 1958 and a judgment referred by Division Bench of this court in the case of Dadabhoy's New Chirimiri Ponri Hill Colliery Company Private Ltd. v. Commissioner of Sales Tax, M.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x at the rate of eight per cent per annum in view of the fact that they are entitled for the same and exempted from payment of tax as their unit is established in the backward area and having been issued with a eligibility certificate by the State Government in this regard. It was further their case that as per the notification issued by the State Government, the transformer was classified under the terms of electrical goods and on April 1, 1992, Government has reduced the tax on electrical goods, vide entry No. 12 under the notification issued, vide annexure P7. It is case of the petitioner that there is no deliberate concealment in the returns and the assessment made by the assessing authority on the basis of notification is not correct. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority, in the course of any proceedings under this Act is satisfied that a dealer has concealed his turnover or the aggregate of purchase prices in respect of any goods or has furnished inaccurate particulars of such sales or purchases, as the case may be, or has furnished a false return, the Commissioner or the appellate authority, as the case may be, may, after giving the dealer a reasonable opportunity of being heard, direct that the dealer shall, in addition to the tax payable by him, pay by way of penalty a sum, which shall be, . . . (emphasis(1) supplied) A perusal of the aforesaid clause indicates that the power to recover penalty in accordance with the rates stipulated therein will arise only if it is found in a particular cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. A return will be a false return when some statement of fact in the return is falsely made. But when the facts are fully and correctly disclosed, raising of a false legal plea cannot make the return false. The assessing authority can, in such cases, easily assess the correct amount of tax on the facts disclosed by the assessee after negativing the untenable legal plea. In Agricultural Implements Dealers Syndicate, Morena v. Commissioner of Sales Tax [1971] 27 STC 227, a Division Bench of this court held that merely putting forward a legal plea in the return does not amount to making a false return. We fully agree with this view. As earlier stated, to make section 43(1) applicable, falsity should be in the disclosure of facts required t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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