PREMIER AUTOMOBILES LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE applicants are registered dealer under the Bombay Sales Tax Act, 1959. For the period 1st July, 1967, to 30th June, 1968, the applicants were required to file quarterly returns under the provisions of the Bombay Sales Tax Act, 1959, read with rule 22 (2) (c) of the Bombay Sales Tax Rules. THE applicants were thus required to file quarterly returns for the period ending 30th September, 1967, 31st December, 1967, 31st March, 1968, and 30th June, 1968. Under section 38 (2) of the Bombay Sales Tax Act, 1959 a registered dealer furnishing returns shall first pay into the Government treasury the whole of the amount of tax due from him according to such returns. THE applicants were required to pay in respect of the quarter ending 30th September, 1967, a sum of about Rs. 19 lakhs for payment of tax under the Bombay Sales Tax Act on or before 7th November, 1967. THEy were also liable to pay for this period Central sales tax of approximately Rs. 14 lakhs on or before the said date. Before the expiry of the said period the applicants by their letter of 31st October, 1967, applied for extension of time for making the said payments. As a result of the said application the applicants were granted time as prayed for. THE respondents in their letter of 25th November, 1967, while granting such extension stated as follows : "it has been decided to grant you the instalments asked for without prejudice to levy of penalty by the sales tax department on account of late payment of the tax amount". THE applicants were directed to pay Rs. 16,50,000 on or before 15th December, 1967, and Rs. 16,50,000 on or before 15th January, 1968. Similar extensions for payment of tax due and payable as per return were also asked for for the other three quarters and such extension was granted. THE applicants paid the tax approximately within the extended period so granted to them though in case of some instalments there is a delay of 4 or 5 days in payment of instalments, even after the extended period.

(2.) THE applicants were assessed by the Sales Tax Officer under section 33 of the Bombay Sales Tax Act, 1959, for the said periods by order of assessment dated 16th October, 1972. THE Sales Tax Officer levied a penalty of Rs. 1,07,449. 32 under section 36 (3) of the said Act on the ground that the dealer had not effected payment of tax in time. Being aggrieved by the assessment order the applicants filed an appeal before the Assistant Commissioner of Sales Tax. Ultimately, after some proceedings which are not relevant for the present reference, the Assistant Commissioner of Sales Tax granted a remission of a sum of Rs. 10,445 and he confirmed the penalty of Rs. 96,704. THE matter was ultimately carried to the Sales Tax Tribunal in a second appeal. THE Tribunal confirmed the decision of the Assistant Commissioner of Sales Tax. In respect of this decision the following question has been referred to us under section 61 (1) of the Bombay Sales Tax Act, 1959. " Whether, on the facts and in the circumstances of the case, and having regard to the provisions of section 38 (4) of the Bombay Sales Tax Act, 1959, the Tribunal was justified in maintaining the levy of penalty under section 36 (3) of the Bombay Sales Tax Act, 1959 ?"

(3.) FOR the quarter ending 31st December, 1967, the applicants have been given an extension of time from 7th February, 1968 to 15th February, 1968, for the payment of the first instalment of Rs. 13 lakhs and up to 15th March, 1968, for the payment of the second instalment of Rs. 8,62,136. Both these instalments have been accepted in the assessment order as having been paid within the extended time. In the case of these instalments the order granting extension is dated 29th February, 1968. The application for extension was made before the expiry of the original time. The order of 29th February, 1968, grants an unconditional extension of time.