JETHALAL MULCHAND Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE Gujarat Sales Tax Tribunal (hereinafter referred to as "the Tribunal") has referred the following question of law for the opinion of this Court under section 69 (1) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act") : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the proper section to impose penalty in this case was section 45 (5) and not section 45 (6) of the Gujarat Sales Tax act, 1969 ?"

(2.) THE assessee is a dealer registered under the relevant provisions of the Act. At the material time, the assessee carried on business of reselling cotton bales. THE assessee had filed four quarterly returns in respect of the accounting period S. Y. 2030. THEre was, however, failure on the part of the assessee to pay the whole amount of tax due along with the returns filed in respect of all the four quarters. THE assessee made only part-payment of the tax due along with each return. THE assessee made only part-payments of the tax due along with each return. THE assessee was thereupon served with a notice for the imposition of penalty under section 45 (5) of the Act.

(3.) THE Tribunal rejected both the aforesaid contentions. In rejecting the second contention as regards the applicability of second 45 (6), the Tribunal relied upon an unreported decision of this Court in Special Civil Application No. 1645 of 1972 decided on 8th August, 1973 (Hiranand Shyamdas v. Assistant Commissioner of Sales Tax) (since reported as an appendix at page 426 infra ). THE Tribunal, however, remitted the penalty from Rs. 62,395 to Rs. 40,000 on the ground that it was enough to meet the ends of justice. At the instance of the assessee, however, the Tribunal raised and referred to this Court the question of law set out at the commencement of the judgment.