STATE OF MYSORE Vs. K A CHADDA

JUDGEMENT

(1.) A certain Chadda was the proprietor of a cycle trading company in Bijapur, and in respect of the period between 1st April 1960, and 31st March, 1961, the concerned Commercial Tax Officer made a provisional assessment of his turnover by which he provisionally determined under section 12-B of the Mysore Sales Tax Act, 1957, which will be referred to as the Act, the sales tax payable by him to be Rs. 1,481.28. But the final assessment made under section 12 disclosed that the tax really payable by the dealer was only Rs. 900. So there was a refund of the sum of Rs. 581.28 which represented the excess collection But by then a penalty had been imposed on the dealer for default in the payment of the tax payable under the provisional assessment within the time allotted. The dealer claimed a refund of the amount recovered from him by way of such penalty to the extent of the reduction in the determination of the tax by the final assessment.

(2.) The Commercial Tax Officer refused the refund of that part of the penalty and the Assistant Commissioner dismissed the appeal preferred by the dealer. But the Sales Tax Appellate Tribunal directed the refund claimed by the dealer on the principle that no penalty could be imposed for the non-payment of the tax which was not payable under the final assessment, although it was, under the provisional assessment.

(3.) The State challenges the order made by the Tribunal in this revision petition on the ground that the liability to pay penalty fastens itself on the dealer under section 13 of the Act when there is a default, and that liability does not disappear when there is a reduction of the tax by the final assessment.