HINDUSTAN LEVER LTD Vs. ASSISTANT COMMISSIONER, COMMERCIAL TAX

JUDGEMENT

(1.) THE short point involved in this writ petition is as to whether "non- payment of less than 80% of the tax alongwith return amounts to filing of a false return so as to attract the penalty under Section 69(3) of the M.P. Commercial Tax Act, 1994" (hereinafter referred to as MPCT Act). The said provision reads as under:-

(2.) ACCORDING to the petitioner, once the return has been filed correctly and the tax has also been calculated in the return correctly, mere non-payment of the tax alongwith return would not attract the penalty under section 69(3) of the Act. It is submitted that in such circumstances, at the most provision of section 26 of the Act may be attracted which reads as under:-

(3.) BRIEFLY stating the facts giving rise to the filing of this writ petition are that the petitioner who is an entry tax assessee for the year 1997-98 filed his return. After disclosing his turn over and the amount of taxable income, tendered tax which was less than 80% of the amount due. The matter went to the Assessing Officer. However, the Assessing Officer also initiated proceedings for imposition of penalty under Section 69 of the MPCT Act on the ground of short deposit of entry tax to the tune of Rs.72,874.00 alongwith the return. A show cause notice was given to the petitioner, who preferred to file a reply. The crux of the reply is in para 2 of the reply placed on record as Annexure P-2 which is reproduced hereunder for the sake of reference:-