STATE OF TAMIL NADU Vs. K M DHARUMARAJA

JUDGEMENT

(1.) ANINTERESTING question on the scope of section 10a read with section 10 (b) of the Central Sales Tax Act, 1956, hereinafter called "the Act", arises in this tax case.

(2.) BRIEF facts are the following : On the basis of contravention of section 10 (b) of the Act, proceedings were taken against the respondent-assessee under section 10a of the Act. The assessing officer levied a penalty for contravention of section 10 (b) of the Act, which was, on appeal, confirmed by the first appellate authority. Before the Tribunal, on behalf of the respondent-assessee, a contention was raised stating that the penalty levied by the Joint Commercial Tax Officer, Rajapalayam, cannot be sustained inasmuch as the registration certificate was issued by the Assistant Commercial Tax Officer, Rajapalayam. In other words, it was contended on behalf of the respondent-assessee that the authority who issued the registration certificate alone was competent to levy penalty for violation of section 10 (b) of the Act. That contention was accepted by the Sales Tax Appellate Tribunal on the basis that the ruling of the Supreme Court reported in State of U. P. v. Dyer Meakin Breweries Ltd. [1973] 31 STC 588, was to that effect. It may be mentioned that the Tribunal did not go into merits of the case. Only on the abovesaid technical ground regarding the competency of the authority who levied the penalty, the appeal was allowed.