NIRANJAN MILLS LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) BY this reference under section 61 (1) of the Bombay Sales Tax Act, 1959, made at the instance of the assessee, the Maharashtra Sales Tax Tribunal has referred the following question of law to this Court for opinion : " Whether, on the facts and circumstances of the case and on a true and correct interpretation of the provisions of sections 37 and 46 of the Bombay Sales Tax Act, 1959, the Tribunal was justified in law in upholding the forfeiture of tax collected by the applicants during in unregistered period ?"

(2.) THE assessee, M/s. Niranjan Mills Ltd. , was carrying on business in Bombay. Initially, it had no fixed place of business in Bombay. It was carrying on its business activities in Bombay from its Delhi office. In respect of its business in Bombay, it was, therefore, registered under the Bombay Sales Tax Act, 1959 ("the Act") as a "non-resident dealer" with effect from April 20, 1966. Subsequently, it opened a place of business in Bombay. Soon thereafter, it applied for cancellation of the registration certificate granted to it as a non-resident dealer and for grant of fresh registration certificate as dealer in the State. On the above application of the assessee, the Sales Tax Officer cancelled the registration certificate earlier granted to the assessee as a non-resident dealer and issued a fresh certificate in respect of his place of business situated in Bombay with effect from July 1, 1975.

(3.) THE Assistant Commissioner did not find any merit in any of the above submissions of the assessee. He upheld the action of the Sales Tax Officer treating the assess as an unregistered dealer in respect of its Sangli branch and forfeiting the collection of tax made by it. He also upheld the levy of additional tax and penalty under section 36 (2) (a ). While deciding the appeals, the Assistant Commissioner also initiated proceedings for levy of penalty under section 37 of the Act and issued a notice and called upon the assessee to show cause as to why for unauthorised collection of tax, penalty should not be imposed under section 37 of the Act and, after hearing the assessee, imposed penalty of Rs. 2,000, Rs. 1,000 and Rs. 500 for three periods under section 37 of the Act.