MAHOMED TAYOOB DARUWALA Vs. STATE OF BOMBAY

JUDGEMENT

(1.) -

(2.) THIS petition for a writ of certiorari in a case arising under the Sales Tax Act has been argued before us by Mr. S. P. Mehta, learned counsel for the assessee, with his usual lucidity and discernment. The amount involved in the petition is small, but we are told and readily believe that the determination of the question of construction that arises on this petitions must affect many other cases under the Sales Tax Act. The petitioner has been carrying on business in partnership under the name of Liberty Silk Mart. One of the partners died, and the petitioner continued the business as its sole proprietor. The firm was registered as a dealer under the Bombay Sales Tax Act, 1953 (hereinafter referred to as "the Act"). The assessment periods are 20th April, 1954, to 14th October, 1954, and 15th October, 1954, to 31st March, 1955. The Sales Tax Officer completed the assessments for the two periods and passed an order levying a penalty of Rs. 393-2-0 and Rs. 200-7-0 respectively for the two periods under section 16(4) of the Act. In an appeal against that order, the Assistant Collector of Sales Tax held that the penalty could not be levied on the ground on which the Sales Tax Officer had proceeded to do so, but he levied a penalty of Rs. 157-88 nP. for the late payment and non-payment of tax due by the assessee. The firm thereupon preferred revision applications to the Sales Tax Tribunal, and the Sales Tax Tribunal affirmed the view taken by the Assistant Collector of Sales Tax. It is against that order of the Tribunal that the petitioner has come to this Court on this petition.

(3.) THE argument advanced before us by Mr. S. P. Mehta may be succinctly stated. It is said that the present case can only fall under sub-section (4) of section 16. That is not disputed. THE material part of sub-section (4) relied on by Mr. S. P. Mehta is :- "(4) If the tax is not paid by any dealer within the prescribed time, the dealer shall pay, by way of penalty in addition to the amount of tax, a sum equal to ......"