POORNA ELECTRICAL INDUSTRIES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) Clause (b) of sub-section (8) of section 14 of the Andhra Pradesh General Sales Tax Act, 1957, which deals with levy of penalty under sub-section (2) or sub-section (3) or sub-section (4) of that section, provides that the penalty shall not exceed one half of the tax or the fee due in a case where such failure was not willful.

(2.) In the order levying penalty the assessing authority imposed penalty at five times the tax due. On appeal to the Deputy Commissioner (CT), the quantum of penalty was reduced to one half of the tax due in view of the finding that the failure was not willful. On further appeal by the assessee to the Sales Tax Appellate Tribunal, the order of the first appellate authority was upheld in T.A. No. 568 of 1986 by order dated 30/06/1989. It is that order of the Tribunal which is questioned in this T.R.C.

(3.) Mr. A. K. Jaiswal, the learned counsel for the petitioner contends that as there has been no willful suppression, the authority ought not to have levied penalty at all, in any event it is not a case where the authority should have levied the maximum penalty permissible in law.