COMMISSIONER OF SALES TAX Vs. BOMBAY COMMERCIAL TRADERS

JUDGEMENT

(1.) This is a Reference under S. 9(2) of the Central Sales Tax Act, 1956, read with S. 61(1) of the Bombay Sales Tax Act, 1959. The question submitted to us for our determination in this Reference is as follows :

(2.) The brief facts necessary to be related for the purpose of this Reference are that the respondents were registered as dealer under the Central Sales Tax Act, 1956 (hereinafter referred to and "the Central Act"). In respect of the assessment period April 1, 1965 to March 31, 1966 the respondents were assessed to tax under the Central Act by the Sales Tax Officer, A Ward, Unit IV, Bombay, on February 18, 1969. The Sales Tax Officer also imposed upon the respondents a penalty in the sum of Rs. 1,190.60p. for delay in payment of tax under the Central Act for the quarter ended September 30, 1965 and for non-payment of tax for the quarter ended December 31, 1965, which amounts were shown as payable in the returns filed by the respondents. The Sales Tax officer imposed this penalty purporting to do so under S. 9(3) of the Central Act, as it then stood, read with S. 36(3) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the Bombay Act"). Against this order imposing penalty the respondents filed an appeal to the Assistant Commissioner of Sales Tax. One of the contentions of the respondents was that no such penalty could be imposed upon them under the Central Act and the provisions of the Bombay Act relating to imposition of penalty for late payment or non-payment of tax could not be invoked for the imposition of a penalty under the central Act. The Assistant Commissioner Sales Tax negatived this and other contentions and dismissal the respondent appeal. Against this order of dismissal the respondents filed a second appeal to the Tribunal. The Tribunal, following in earlier decision, allowed the appeal and in aside the penalty imposed upon the respondents.

(3.) From this judgment and order of the Tribunal this Reference has been made at the instance of the Commissioner of Sales Tax.