PLASTIC PROCESSORS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The present revision has been filed by the assessee against the impugned order of the Tribunal by which the Tribunal, while confirming the orders of the assessing authority as well as the Appellate Assistant Commissioner imposing penalty under Section 16(2) of the Tamil Nadu General Sales Tax Act 1959, has held that the assessee isliable for penalty to the minimum levy of 50%. It is against the said impugned order of the Tribunal, the assessee has filed the present revision which was admitted on the following questions of law

(2.) The issue is as to whether the levy of penalty is admissible or not. On the facts of the case, as it is found by the assessing authority in his order, it is clear that the assessee while filing the original returns has claimed exemption in respect of certain High Sea Sales and the same was disallowed, by holding the turnover at Rs.8,60,000/-and inflicted the penalty of Rs. 29,232/-under Section 16(2) of the Act. It was against the said order of the assessing authority, the assessee filed an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner has confirmed the order of the assessing authority, against which the assessee has filed further appeal before the Tribunal and the Tribunal in the impugned order while confirming the orders of both the authorities, however, has reduced the penalty to minimum50% by holding that there is willful non-disclosure under Section 16(2) by the assessee.

(3.) The law is well settled that when once the saleis shown in the bill of lading and claimed exemption that will not amount to wilful non-disclosure by the assessee. On a reading of the assessment order it is seen that it is not even the case of the assessing authority that there is wilful non-disclosure under Section 16(2) of the TNGST Act, 1959 which reads as follows: