COMMISSIONER OF SALES TAX Vs. SHIVANDAS TEKCHAND

JUDGEMENT

(1.) THIS reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 is at the instance of the Commissioner of Sales Tax to decide the following question of law, viz. :

(2.) THE dealer is engaged in the business of manufacture and sale of rice. The relevant period of assessment is 1971-72 ending on Diwali. Purchases of paddy from unregistered dealers were for an amount of Rs. 5,38,062. The paddy was utilised for manufacture of rice and was assessed to purchase tax. The dealer had shown the purchase turnover of Rs. 3,73,170. 80 in the return resulting in shortfall therein to the extent of Rs. 1,64,892. 15. The return was treated to be false and after issuing notice to show cause as to why penalty should not be imposed under Section 43 of the Act, a penalty of Rs. 2,000 was imposed.

(3.) THE dealer filed an appeal before the Appellate Assistant Commissioner who rejected it. The second appeal to the Tribunal, however, was allowed and the penalty has been set aside. The Tribunal has held that the explanation given by the dealer was quite plausible and no case for imposition of penalty was made out. It has been pointed out that full particulars of the purchases made from the registered as well as unregistered dealers had been shown in the return and the mistake was only in showing some purchases under wrong head, or in other words, the error was only of misclassification and not of suppressing of any material fact or particulars relating to the purchases made by the dealer. Accordingly the Tribunal has held that the requisite element of guilty mind is not made out.